Present value is:
A)how much a certain amount of money that will be obtained in the future is worth today.
B)how much a certain amount of money that you have in the present will be worth in the future.
C)the process of accumulation of additional interest paid on interest that has already been earned.
D)needs to be discounted to be meaningful.

Question

Quizplus · Accepted Answer

Present value is the current value of a future sum of money. It is the amount of money that would need to be invested today, at a certain interest rate, in order to accumulate to the future sum of money. Therefore, it is the worth of a future amount of money in today's terms.

Present Value Is