present value

noun

: the sum of money which if invested now at a given rate of compound interest will accumulate exactly to a specified amount at a specified future date

Examples of present value in a Sentence

Recent Examples on the Web
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This method considers a company’s present value as the difference between the fair market value of its net assets and its liabilities. Lien De Pau, Forbes, 1 Jan. 2025 In calculating the net present value, the owner should use an appropriate discount rate. Joshua Stein, Forbes, 19 Dec. 2024 Ohtani’s contract has a net present value (NPV) of roughly $46 million a year. Kurt Badenhausen, Sportico.com, 3 Sep. 2019 Some of the determinants that sway decision making include: the value of civil and criminal fines, the enforcement of the violations, and the net present value of payoffs for accepting bribes. Matt Rybaltowski, Forbes, 25 Nov. 2024 See all Example Sentences for present value 

Word History

First Known Use

1831, in the meaning defined above

Time Traveler
The first known use of present value was in 1831

Dictionary Entries Near present value

Cite this Entry

“Present value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/present%20value. Accessed 15 Jan. 2025.

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