With a constant nominal interest rate equal to i,the present discounted value of $1.00 to be received 4 years from today is equal to
A)1+i.
B)i4.
C) (1+i)4.
D)1 / (1+i)4.
E)4(1+i).

Question

Quizplus · Accepted Answer

The formula for present discounted value is: PV = FV / (1 + i)n, where PV is the present value, FV is the future value, i is the interest rate, and n is the number of years. Plugging in the values given in the question, we get PV = $1.00 / (1 + i)4. Therefore, the answer is D, 1 / (1+i)4.

With a Constant Nominal Interest Rate Equal to I,the Present