Present value is the concept in finance that calculates the value of a future amount in terms of its worth in today's dollars, taking into account factors like interest rates and time. It is used to compare the value of money received in the future with the value of money in hand today.

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Present Value Is the

Question 23

Multiple Choice

Present value is the

A) inverse of the interest rate.
B) reverse of the interest rate.
C) future value minus the rate of inflation.
D) value of a future amount expressed in today's dollars.

Correct Answer: