Present value is the value now of a given amount to be paid or received in the future, assuming compound interest.

Name: Present value is the value now of a given amount to be paid or received in the future, assuming compound interest.
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Present value is the current value of a future payment or receipt, taking into account the impact of interest on the amount over time. Therefore, it assumes compound interest rather than simple interest.

Present Value Is the Value Now of a Given Amount