Final answer:
The future value and present value are related through discounting. Future value represents the future worth of an investment, while present value represents the current worth of a future sum after discounting for the time value of money.
Step-by-step explanation:
The future value (Appendix A) is related to the present value of a single sum (Appendix B) through the concept of discounting. The present value is the current worth of a future sum of money, while the future value represents the value of an investment or cash flow at a specified date in the future.
To calculate the present value of a future sum, we use a discount rate, which accounts for the time value of money. The discount rate is typically based on the interest rate or the required rate of return on investment. By discounting the future cash flows, we can determine their present value.
In summary, the future value and present value are related in that the future value represents the future worth of an investment, while the present value represents the current worth of a future sum of money after discounting for the time value of money.