$1 received n years from now has a value today of A) ($1 + i)/i. B) $1/(1 + i). C) ($1 + i)ⁿ/i. D) $1/(1 + i)ⁿ.

Name: $1 received n years from now has a value today of A) ($1 + i)/i. B) $1/(1 + i). C) ($1 + i) n /i. D) $1/(1 + i) n .
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Question

Quizplus · Accepted Answer

The value today of $1 received n years from now is calculated using the present value formula, which is $1/(1 + i)^n, where i is the interest rate. This formula is represented in choice D using the notation for superscript and subscript.

$1 Received N Years from Now Has a Value Today