Present value ↩

Metadata

aliases: [PV]
shorthands: {}
created: 2022-02-20 22:55:09
modified: 2022-02-20 23:07:49

Present value (PV) is the current value of a future sum of money or stream of cash flows.

For example, in the situation described in Discount factor, the present value of the unit of currency, paid at the end of the contract has a present value .

Notes

Present value states that an amount of money today is worth more than the same amount in the future
Unspent money today could lose value in the future by an implied annual rate due to inflation or the rate of return if the money was invested