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Guy A comes to you with an investment opportunity for you to earn $600 in 6 years with a guaranteed return of 7 percent. You

Guy A comes to you with an investment opportunity for you to earn $600 in 6 years with a guaranteed return of 7 percent. You understand the time value of money calculations. Which of the following is the correct formula for computing the amount of investment needed today to make this return?

a. PV = $600(1 + .07)7

b. PV = $600/(1 + 6).07

c. PV = $600(.07 6)

d. PV = $600/(1 + .07)6

e. PV = $600(1 + .06)7

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