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Finance · Basic Finance

Present Value

Noun
US US /ˈpreznt ˈvæljuː/ GB UK /ˈpreznt ˈvæljuː/
Finance Basic Finance beginner

Definition

The current value of a future amount of money at a specified rate of return.

Visual Reference

Present Value illustration

Detailed Explanation

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Example

Present Value is a fundamental concept used in financial statements and business planning.

In Practice

Also known as: PV, Discounted Value. Closely related to Future Value, Discount Rate. Contrasts with Future Value.

Video Explanation

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Case Study

Present Value - key concept in Basic Finance.

Word Usage

Investment appraisal; Bond pricing; Business valuation

Finance Basic Finance

Use Case

Applied in Basic Finance contexts: Investment appraisal; Bond pricing

Also Known As

basic-finance

Synonyms

PVDiscounted Value

Antonyms

Future Value

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