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Tresset [83]
2 years ago
6

If the interest rate is 12.5 percent, what is the present value of $200 received in one year?

Mathematics
1 answer:
bogdanovich [222]2 years ago
8 0

177.78 is the present value of $200 received in one year.

What do interest rates mean?

  • An interest rate indicates how expensive borrowing is or how lucrative saving is.
  • Therefore, if you are a borrower, the interest rate is the sum you pay for borrowing money and is expressed as a percentage of the overall loan amount.

What is an example of interest rates?

The basic interest formula is as follows, for instance, if you take out a $20,000 loan with a five-year term and a 5% interest rate: $5,000 in interest results from multiplying $20,000 by.05 by 5.

PV=FV *  (1+i)^-n

=200\1.125

= 177.78

Learn more about interest rates

brainly.com/question/13324776

#SPJ4

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Step-by-step explanation:

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