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).
D
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Suppose two economists disagree about who would be helped or hurt by certain legislation. These disagreements
a. are positive in nature b. are minor and rarely lead to different policies or conclusions c. are normative in nature d. occur as the result of a mistake made by an economist e. occur because economic models are more complex, and subject to error, than the real world
Sam wants to trade eggs for sausage. Sally wants to trade sausage for eggs. Sam and Sally have a double-coincidence of wants
a. True b. False Indicate whether the statement is true or false
Soup is an inferior good if the demand
a. for soup falls when the price of a substitute for soup rises. b. for soup rises when the price of soup falls. c. curve for soup slopes upward. d. for soup falls when income rises.
During the 2008/09 recession, the Fed bailed out 25 percent of banks to keep them solvent.
Answer the following statement true (T) or false (F)