Answer:
PV= $925
Step-by-step explanation:
Giving the following information:
Money is borrowed at 8% simple interest. After one year, $999 pays off the loan.
To calculate the original value of the loan, we need to use the following formula:
PV= FV/(1+i*n)
PV= 999/(1+0.08*1)
PV= $925
