The amount that would be accumulated at some future date if we invested a sum of money held today at a particular rate of interest is called the:
A) present value.
B) discounted value.
C) equivalent value.
D) future value.
E) net present value.

Question

Quizplus · Accepted Answer

The amount accumulated at a future date after investing a sum of money today is referred to as the future value. Thus, option D is the correct answer. Option A (present value) refers to the amount invested today, while option B (discounted value) is the present value of an expected future cash flow, discounted to reflect its current value. Option C (equivalent value) is not a commonly used financial term, and option E (net present value) is the difference between the present value of cash inflows and outflows of an investment.

The Amount That Would Be Accumulated at Some Future Date