The amount to be invested today at a given interest rate over a specified period in order to equal a future amount is called the
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 to equal a future amount is called the present value. Choices A and D refer to interest factors, which are calculations used to determine the present or future value of an investment based on interest rates and time periods. Choice B refers to the future amount itself, not the amount needed to invest today to reach that future amount.

The Amount to Be Invested Today at a Given Interest