Present value is
A)the value now of a future amount.
B)the amount that must be invested now to produce a known future value.
C)always smaller than the future value.
D)all of these.

Question

Quizplus · Accepted Answer

Present value refers to the value of a future amount in today's terms, the amount that needs to be invested today to achieve a certain future value, and it is always lower than the future value due to factors such as inflation and the time value of money. Therefore, all of the given options correctly define present value.

Present Value Is