alleryStart learning →The amount you have invested today is referred to as the:
APresent value
BFuture value
CTerminal value
DSalvage value
Answer & Solution
Correct answer: A. Present value
1. The two ends of a time value calculation each have a name.
2. Interest is earned on amounts you have invested.
3. The amount invested is the present value.
4. Time then adds value to give the future value.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 7 'Time Value of Money I: Single Payment Value'_
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