57.5k views
0 votes
What is the current value of a future sum of money called?

current value
present value
future value

User Thanhpk
by
8.3k points

2 Answers

1 vote
Present value

Hope I helped you out!
User Janne Karila
by
7.9k points
6 votes

Answer:

The current value of a future sum of money is called :

Present value.

Explanation:

Present value--

In economics and finance the present value gives us the information of how much the future sum of money is worth today.

The future cash flow is discounted at some rate.

If the discount rate is higher the present value of the future money is low.

Present value is also known as present discounted value.