Question
The amount of money today needed to produce a particular sum in the future, given prevailing interest rates, is known as
a. fair value.
b. compound value.
c. future value.
d. present value.
e. beginning value.
a. fair value.
b. compound value.
c. future value.
d. present value.
e. beginning value.
Answers
GPT-4o mini
The correct answer is d. present value.
Present value is the amount of money you would need to invest today at a certain interest rate to obtain a specified sum in the future.
Present value is the amount of money you would need to invest today at a certain interest rate to obtain a specified sum in the future.