is today's value of the amount of money in the future.

Future value

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Present value

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Market value

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Current value

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Solution

The correct option is B Present value
Present value is the concept that states an amount of money today is worth more than that same amount in the future. In other words, cash received in the future is not worth as much as an equal amount received today. Accepting Rs.1,000 today is worth more than Rs.1,000 five years from now.

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Similar questions

Amount of money today which is equal to series of payments in future

Future Value after 5 year = 8,00,000. The rate is 20 %. What is Present value today?

R S . 10, 000

10

8

(1 + 0.08)^{10} = 2.15892500

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