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

It is called the present value.


Present value of a future amount?

the current dollar value of a future amount


What is the future value of your money?

the amount of money you will have at a specified date in the future


Impact of future value in financial decision?

The future value of money is important in a business decision because you don't want to get less than the future value. You also want to make sure you make money if you will not have access to your money.


How does Time Value of Money determine the valuation of bonds?

The Time Value of Money is a foundational principle in finance that states that money received today is worth more than the same amount received in the future due to its potential earning capacity. In the context of bond valuation, the Time Value of Money is used to calculate the present value of future cash flows generated by the bond, including interest payments and principal repayment. By discounting these future cash flows back to their present value using an appropriate discount rate (which accounts for the time value of money), the current price of the bond can be determined.


Which of these functions of money allows to save their money to use in the future?

storehouse of value


Which of these functions of money allows people to save their money to use in the future?

Storehouse of value. (:


What functions of money allows people to save their money to use in the future?

storehouse value


What does time value of money refer to?

The time value of money is the increase in, or future/prjected value of, an amount of money, due to the implied interest earned on it over a period of time.


Why is the concept of the time value of money a very important financial concept both for organizations and for individuals?

Time Value of Money Time Value of Money is an important concept in financial management. It is one of the important tools used in project appraisals to compare various investment alternatives, and solve problems involved in loans, mortgages, leases, savings, and annuities. A key concept behind Time Value of Money is that a single sum of money or a series of equal, evenly spaced payments or receipts promised in the future, can be converted to an equivalent value today. Conversely, you can determine the value to which a single sum or a series of future payments will grow to at some future date. The former is called Present Value of Cash Flows and the later is called Future Value of Cash Flows.