The interest rate used to calculate the present value of future cash ﬂows is called the ____________ rate.
A) Free interest.
B) Annual interest.
C) Compound interest.
D) Simple interest.
E) Discount.

Question

Quizplus · Accepted Answer

The interest rate used to calculate the present value of future cash flows is called the discount rate. It represents the time value of money and determines the amount of money needed today to generate a certain amount of money in the future, accounting for inflation and other factors. The discount rate is commonly used in financial analysis, valuation, and investment decision-making.

The Interest Rate Used to Calculate the Present Value of Future