The amount to be invested today at a given interest rate over a specified period in order to equal a future amount is called
A)present value interest factor.
B)future value.
C)present value.
D)future value interest factor.

Question

Quizplus · Accepted Answer

The amount to be invested today in order to equal a future amount is called present value. The other options, present value interest factor and future value interest factor, refer to mathematical formulas used to calculate present value and future value. Future value refers to the value of an investment after a specified period at a given interest rate.

The Amount to Be Invested Today at a Given Interest