Answered

if the present value of $280 paid one year from now is $250 what is the one-year discount factor?

Answer :

SAMAWATIGO

Answer:

12%

Explanation:

The discount rate  will be  PV/FV -1

i.e., i =  (Fv/pv )-1

i=  (280/250) - 1

i = 1.12-1

i=12%

Answer:

0.89

Explanation:

1/1+r

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