Assume the current interest rate is 25%. The present value of $2,000 to be received in one year would be

A) $1,000.
B) $1,200.
C) $1,600.
D) $1,800.

Interest Rate

The percentage at which interest is charged or paid on borrowed or invested money, typically expressed annually.

Present Value

Today's equivalent value of a sum of money or series of payments expected in the future, considering a particular rate of return.

Received

Pertains to the act of getting or accepting something that was sent or given.