The discounted value of a sum is its:
A)future value.
B)present value.
C)amortized value.
D)book value.

Question

Quizplus · Accepted Answer

The discounted value of a sum refers to its present value, which takes into account the time value of money by adjusting for the interest or discount rate. The future value of a sum refers to the value of that sum at a future point in time, and is not directly related to its discounted value. Amortized value refers to the gradual reduction of a loan or bond's principal over time, while book value refers to the value of an asset as recorded on a company's balance sheet, and is not necessarily related to its discounted value.

The Discounted Value of a Sum Is Its