Calculate the Present Value of $200 one year from now, at an interest rate of 7%.
Answer
PV=FV*(1+i)^(-n)
PV=present value=?
FV=future value=200
n=year=1
i=interest rate =7%
PV=200*(1.07^-1)
=186.915888
=186.92
the PV is $186.92
Calculate the Present Value of $200 one year from now, at an interest rate of 7%.
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