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If the present value of $400 paid one year from now is $320, what is the one-year interest rate? (Note: this number is also known as the discount rate.)

Respuesta :

ewithmeman2007

Answer:

0.2

Step-by-step explanation:

Present Value = $320

Before 1 One Year, Value =$400

Discount = $400-$320= $80

% Discount = (Discount/Amount Before 1 Year)*100

%D = (80/400)*100

.%D = 20% Or 0.2

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