What is the dollar value today of a stream of income over time?

Question

Quizplus · Accepted Answer

The dollar value today of a stream of income over time is referred to as its present value. This is because it represents what the stream of income is worth in today's dollars, accounting for the time value of money. Future value refers to the value of the stream of income at a future point in time, while past value is what the stream of income was worth in the past. Interest payment refers to the amount of money paid as interest on a loan or investment.

What Is the Dollar Value Today of a Stream of Income