The difference between future value and present value is:

Question

Quizplus · Accepted Answer

The difference between future value and present value is the effect of interest. Present value is the current worth of a future sum of money or stream of cash flows, while future value is the value of an asset or cash at a specified date in the future, based on the expected rate of growth over time. Interest plays a crucial role in determining the difference between present and future values.

The Difference Between Future Value and Present Value Is