The amount received today that would be equivalent in value to a future payment or series of payments represents the:
A) present value.
B) discounted value.
C) equivalent value.
D) future value.
E) net present value.

Question

Quizplus · Accepted Answer

The amount received today that is equivalent in value to a future payment or series of payments is known as the present value. It takes into account factors such as interest rates and the time value of money to determine the current value of future cash flows. Therefore, option A is the correct choice.

The Amount Received Today That Would Be Equivalent in Value