The difference between the present and future value of an amount is
A)income
B)interest
C)annuity
D)premium

Question

Quizplus · Accepted Answer

The difference between the present and future value of an amount is essentially the interest earned on that amount over time. Therefore, the correct choice is B (interest). The other choices (income, annuity, premium) are not directly related to the concept of present and future value.

The Difference Between the Present and Future Value of an Amount