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Determining present value

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The amount of money that would need to be invested today at a given interest rate over a specified period in order to equal a future amount is called _______.

future value, present value, future value interest factor, or present value interest factor

I believe the answer is - future value interest factor - please advise answer & why - thanks so much!

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Solution Summary

The present values are determined for investment futures. You will find the answer to this puzzling question inside.

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Answer: Present value

You invest the present value (PV) today at the interest rate r to receive the future value ...

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