Question

The present value of a future amount of money is the amount ​that, if invested​ today, will grow to be as large as that ​ _____ amount when the interest that it will earn is​ _____ into account.
The calculation that we use to convert a​ _____ amount of money to its​ _____ value is called discounting.

A. ​future; taken;
​future; present

B.​ present; taken;
​present; future

C. ​future; taken;
​present; future

D. ​future; not​ taken;
​future; present

Answer 1

Answer: A. Present; B. Taken; C. Future; D. Present

Explanation:

The present value of a future amount of money is the amount ​that, if invested​ today, will grow to be as large as that ​present amount when the interest that it will earn is​ taken into account.

The calculation that we use to convert a​ future amount of money to its​ present value is called discounting.