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7 February, 16:51

If the present value of $250 expected one year from today is $200, what is the one-year discount rate?

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  1. 7 February, 19:46
    0
    25%

    Explanation:

    The computation of the one-year discount rate is shown below:

    As we know that

    1 + discount rate = (Present value) : (expected value)

    1 + discount rate = ($250) : ($200)

    1 + discount rate = 1.25

    So, the discount rate would be

    = 1.25 - 1

    = 0.25 or 25%

    Hence, we consider all the information which is given in the question
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