The present value of a future payment or series of payments represents the amount that would be accumulated at some future date if we invested that sum of money now at a particular rate of interest.

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The present value of a future payment or series of payments represents the amount that would need to be invested now, at a particular rate of interest, to equal the future payment or series of payments. It is not about the amount that would be accumulated in the future, but rather the current value of that future amount.

The Present Value of a Future Payment or Series of Payments