A reciprocal relationship exists between the "future value of $1" and the "present value of $1."

Question

Quizplus · Accepted Answer

The future value of $1 is the amount that $1 invested today will be worth at a future point in time, while the present value of $1 is the amount that $1 to be received in the future is worth in today's dollars. These two values are reciprocals of each other, meaning that if you know the future value of $1, you can use the reciprocal (1 divided by the future value) to calculate the present value of $1, and vice versa. Therefore, a reciprocal relationship exists between the two values.

A Reciprocal Relationship Exists Between the "Future Value of $1