It is the value today of an amount to be received in future; it is the amount that would have to be invested today at a given interest rate over a specified period of time to accumulate the future…

The correct answer is A. Present value. See the full explanation below for the reasoning.

Investment Management

Question

It is the value today of an amount to be received in future; it is the amount that would have to be invested today at a given interest rate over a specified period of time to accumulate the future amount. What is it?

Options

APresent value
BDiscounted value
CCompounded value
DLump-sum value

How the community answered

(29 responses)

A
83% (24)
B
10% (3)
C
3% (1)
D
3% (1)

Topics

#present value#time value of money#discounting#lump sum

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