The value that can be received today is $5,527,475.33 if the interest rate is 7%.
The value that can be received today if the interest rate is 7% can be calculated by using the formula for compound interest. This formula can be given as;
A = P (1 + r/n)^nt
Here, A represents the final amount, P represents the initial balance (which we have to find in this case), r represents the interest rate, n illustrates the number of times interest applied per time period and t represents the number of time periods elapsed.
Now by substituting the given values, we can find the value that can be received today as follows;
A = P (1 + r/n)^nt
30,000,000 = P (1 + 0.07/1)^25×1
30,000,000 = P (1 + 0.07)^25
30,000,000 = P (1.07)^25
P = 30,000,000 ÷ (1.07)^25
P = 5,527,475.33
Therefore, the value that can be received today is calculated to be $5,527,475.33
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