The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as
A) future value.
B) fair value.
C) present value.
D) compound value.
E) beginning value.

Question

Quizplus · Accepted Answer

The amount needed today to produce a particular sum in the future is known as present value, which reflects the time value of money based on prevailing interest rates. Future value refers to the value of an asset or investment at a specific date in the future, while fair value refers to the estimated market value of an asset or liability. Compound value and beginning value are not commonly used financial terms.

The Amount Today That Would Be Needed, at Prevailing Interest