What Is The Definition Of Present Value?, A. The Future Value Of A Current Sum Of Money , B. The Current Value Of A Future Sum Of Money, C. The Intere

What is the definition of present value?

A. the future value of a current sum of money
B. the current value of a future sum of money
C. the interest paid on a future sum of money
D. the interest paid on a current sum of money

 

Answer:

B. The current value of a future sum of money

Present value means the current value of a future sum of money or stream of cash flowing.

Additional definition: The process of finding present values is called discounting and the interest rate used to calculate present value is called the discount rate.


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