Multiple Choice
Suppose the nominal interest rate is zero.In this situation,the present discounted value of a finite sequence of future payments is equal to which of the following?
A) zero
B) the sum of the all payments divided by the rate of inflation
C) the average value of each payment
D) the sum of all payments
E) the square of the sum of all payments
Correct Answer:
Verified
Correct Answer:
Verified
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