Question

What is the current value of a future sum of money called?

A.
current value
B.
present value
C.
future value

Answer 1

Your question:

What is the current value of a future sum of money called?

Answer:

B) Present Value

Although current is a synonym of present, present is the correct meaning. The current value of a future sum of money is called Present Value.

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- I.A -

Answer 2

The current value of a future sum of money is:

Option: B

B. Present Value.

Explanation:

Present value--

In terms of finance the present value is the value in the present of a sum of money or stream of cash flows , in contrast to some future value it will have when it has been invested at compound interest.

Future cash flows are discounted at some rate called as discount rate.

Higher the discount rate lower is the present value of future cash flow.