The interest rate used to compute the present value of a future cash flow is called the:
A)prime rate.
B)current rate.
C)discount rate.
D)compound rate.
E)simple rate.

Name: The interest rate used to compute the present value of a future cash flow is called the: A)prime rate. B)current rate. C)discount rate. D)compound rate. E)simple rate.
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Question

Quizplus · Accepted Answer

The discount rate is the interest rate used to determine the present value of future cash flows.

The Interest Rate Used to Compute the Present Value of a Future