The value you give today to money you will receive in the future is called the future payment's
A)time-sensitive value.
B)future value.
C)present value.
D)historical value.

Question

Quizplus · Accepted Answer

The value you give today to money you will receive in the future is called the present value. Option A, time-sensitive value, is not commonly used terminology in finance. Option B, future value, refers to the value that an investment will grow to at a specified future date based on a certain interest rate. Option D, historical value, refers to the value of something in the past, and is not relevant to this question.

The Value You Give Today to Money You Will Receive