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What is the present value of $300 due in 1 year at a discount rate of 5%?

User Hhravn
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Final answer:

The present value of $300 due in 1 year at a discount rate of 5% is $285.71.

Step-by-step explanation:

The present value of $300 due in 1 year at a discount rate of 5% can be calculated using the present value formula. The formula is:

Present Value = Future Value / (1 + Discount Rate) ^ Number of Periods

Using this formula, the present value is:

Present Value = $300 / (1 + 0.05) ^ 1 = $285.71

Therefore, the present value of $300 due in 1 year at a discount rate of 5% is $285.71.

User James Wulkan
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