What is the current value of a future sum of money called?
2 answers:
Present value
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Answer: </h2>
The current value of a future sum of money is called :
Present value.
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Step-by-step explanation: </h2>
<u>Present value-- </u>
In economics and finance the present value gives us the information of how much the future sum of money is worth today.
The future cash flow is discounted at some rate.
If the discount rate is higher the present value of the future money is low.
Present value is also known as present discounted value.
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