Present value:
A)is always greater than the future value of money.
B)does not account for inflation.
C)is how much an amount of money obtained in the future is worth today.
D)All of these are true.

Question

Quizplus · Accepted Answer

Present value is a financial concept that calculates how much a future amount of money is worth in today's dollars, taking into account factors like inflation and interest rates. It does not imply that it is always greater than future value (A is incorrect), nor does it ignore inflation (B is incorrect).

Present Value