The amount to invest now to receive more later is the:
A)present value.
B)future value.
C)maturity value.
D)time value.

Question

Quizplus · Accepted Answer

The present value is the amount that needs to be invested now to receive a higher amount in the future. The future value represents the value of the investment at a future point in time. The maturity value is the total amount due to the investor at maturity of the investment. The time value is the concept that money available at present is worth more than the same amount in the future due to its earning potential. Therefore, the correct answer is A) Present value.

The Amount to Invest Now to Receive More Later Is