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

question 16

Multiple Choice

With a constant nominal interest rate equal to i, the present discounted value of $1.00 to be received 6 years from today is equal to:

• A) 1 + i.
• B) 1/(1 + i)6.
• C) i6.
• D) 6(1 + i).
• E) (1 + i)6.