____________ value is the value today of an amount to be received in the future.
A)Present
B)Future
C)Intrinsic
D)Extrinsic

Question

____________ value is the value today of an amount to be received in the future. ​
A)Present
B)Future
C)Intrinsic
D)Extrinsic

Quizplus · Accepted Answer

Present value is the current worth of a future sum of money, taking into account a specified interest rate and time. It is used to determine the value of future payments in today's dollars. Future value, on the other hand, is the value a sum of money will have at a specified future point in time, based on a certain interest rate. Intrinsic value refers to the inherent value of an asset, whereas extrinsic value refers to any portion of an option's price that is not intrinsic value. Therefore, the correct answer is A) Present.

____________ Value Is the Value Today of an Amount to Be