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It is called the present value.

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12y ago

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

present value


Which term is defined as the value of a current sum of money at a specified date in the future?

It is called the 'future value' .


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

The current value of a future sum of money is called its "present value." Present value represents the amount of money that needs to be invested today at a certain interest rate to equal the future sum at a specified date. This concept is fundamental in finance and investment analysis, as it helps compare the worth of money received at different times.


Lump Sum Future Value Calculator?

Lump Sum Future Value Calculator Use this calculator to determine the future value of a lump sum.


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

The present value is the reciprocal of the future value.


Lump Sum Present Value Calculator?

Lump Sum Present Value Calculator Use this calculator to determine the present value of a future lump sum.


How do you determine whether to use future or present value?

To determine whether to use future or present value, consider the context of your financial analysis. If you want to find the worth of an investment or cash flow at a specific point in the future, use future value. Conversely, if you need to assess the current worth of a sum that will be received or paid in the future, apply present value. The choice also depends on whether you are calculating growth over time or discounting future amounts back to today.


The ratio of the sum of cash receivables and marketable securities to current liabilities is called?

Is Current Ratio


What is a circuit with several current paths whose total current equals the sum of the currents in its branches called?

This is a parallel circuit, each of the parallel current paths draws a certain current, and the input current equals the output current, so the sum of all current through each path has to equal the total current.


What disclosure is required for a change from sum of the years digits to a straight line Method?

re-computation of current and future years' depreciation


What is the difference between compounding and discounting?

Compounding finds the future value of a present value using a compound interest rate. Discounting finds the present value of some future value, using a discount rate. They are inverse relationships. This is perhaps best illustrated by demonstrating that a present value of some future sum is the amount which, if compounded using the same interest rate and time period, results in a future value of the very same amount.


Is down payment considered as present value?

A down payment is not typically considered present value in financial terms. Present value refers to the current worth of a future sum of money or stream of cash flows, discounted at a specific rate. The down payment is an initial amount paid upfront to reduce the total loan amount, while present value calculations focus on future cash flows. However, the concept of present value can apply to the overall financing arrangement, including how the down payment affects future payment obligations.