Match each of the following terms related to interest and time value of money calculations to their appropriate definition.
-The present amount that is equivalent to an amount at a future time.
A)Time value of money
B)Simple interest
C)Compound interest
D)Future value of a single amount
E)Present value of a single amount
F)Annuity
G)Future value of an annuity
H)Present value of an annuity

Question

Quizplus · Accepted Answer

The present value of a single amount is the current worth of a future sum of money or stream of cash flows given a specified rate of return. It contrasts future amounts or values, which are calculated through the process of discounting.

Match Each of the Following Terms Related to Interest and Time