Answer:
PV= $160,000
Explanation:
Giving the following information:
Future Value (FV)= $200,000
Discount rate (i)= 25%
Number fo periods (n)= 1 year
To calculate the present value (PV), we need to use the following formula:
PV= FV / (1+i)^n
PV= 200,000 / 1.25^1
PV= 200,000/1.25
PV= $160,000
