answersLogoWhite

0


Best Answer

The principal which, drawing interest at a given rate, will amount to the given sum at the date on which this is to be paid; thus, interest being at 6%, the present value of $106 due one year hence is $100.

User Avatar

Norval Lind

Lvl 10
βˆ™ 3y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

βˆ™ 11y ago

Present value in the value that the money has currently, not the value it will have in the future. Present value does not include the sum of the money from interest that is being accrued.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the definition of present value?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is the present value factor the exponent of the future value factor?

The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.


How is the future value related to the present value of a single sum?

The present value is the reciprocal of the future value.


If you want to find the present value of an investment you should choose the financial function?

You can use the PV function or the NPV function. Present Value is the result of discounting future amounts to the present. Net Present Value is the present value of the cash inflows minus the present value of the cash outflows.


Definition of present indefinite?

asdasdasrasrara


What is the definition of absent?

Not present or attending.


What is the definition of Nowadays?

At the present time.


What is the definition of cadeau?

present,gift


What is the relationship between present value factor and annuity present value factor?

Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.


What is the relationship between the present value factor and annuity present value factor?

Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.


Difference between present value and net present value?

Present value is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,210 if the future amount is discounted at 10% compounded annually.Net present value is the present value of the cash inflows minus the present value of the cash outflows. For example, let's assume that an investment of $5,000 today will result in one cash receipt of $10,000 at the end of 5 years. If the investor requires a 10% annual return compounded annually, the net present value of the investment is $1,210. This is the result of the present value of the cash inflow $6,210 (from above) minus the present value of the $5,000 cash outflow. (Since the $5,000 cash outflow occurred at the present time, its present value is $5,000.)


How do you define the value of value?

I need a answer how do you know when to use future value or present value and future value of a annuity and present value of annuity Please help


What is definition of attitude?

the way you present yourself