The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called
A) future value.
B) present value.
C) future value of an annuity.
D) present value of an annuity.

Question

Quizplus · Accepted Answer

This is the definition of present value. Future value refers to the value of an investment at a future date, while the future value of an annuity and present value of an annuity refer specifically to periodic payments or receipts at future or present dates.

The Amount of Money That Would Have to Be Invested