Assume the current interest rate is 20%. The present value of $900 in one year would be

Name: Assume the current interest rate is 20%. The present value of $900 in one year would be
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The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods. Here, FV = $900, r = 20% or 0.20, and n = 1. So, PV = $900 / (1 + 0.20) = $900 / 1.20 = $750.

Assume the Current Interest Rate Is 20