Assume the current interest rate is 25%. The present value of $1,000 in one year would be

Name: Assume the current interest rate is 25%. The present value of $1,000 in one year would be
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The present value (PV) of $1,000 in one year at an interest rate of 25% is calculated using the formula PV = FV / (1 + r), where FV is the future value ($1,000) and r is the interest rate (0.25). Thus, PV = $1,000 / (1 + 0.25) = $1,000 / 1.25 = $800.

Assume the Current Interest Rate Is 25