The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called
A) future value.
B) present value interest factor.
C) present value.
D) future value interest factor.

Question

Quizplus · Accepted Answer

The amount of money that would have to be invested today to equal a future amount is called present value. Future value refers to the amount of money that an investment is expected to grow to over a certain period of time with interest. Present value interest factor and future value interest factor are both calculations that help determine present value and future value, respectively.

The Amount of Money That Would Have to Be Invested