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

Here's a step-by-step explanation:

1. Identify the future amount: This is the amount of money you want to have at the end of the investment period.

2. Identify the interest rate: This is the rate at which your investment will grow. It could be an annual interest rate, monthly, etc.

3. Identify the investment period: This is the length of time for which the money will be invested.

4. Use the formula for present value: The formula is PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate (expressed as a decimal), and n is the number of periods.

5. Calculate: Plug the future amount, interest rate, and investment period into the formula to calculate the present value. This will tell you how much money you would need to invest today to reach your desired future amount.

Question

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

Here's a step-by-step explanation:

1. Identify the future amount: This is the amount of money you want to have at the end of the investment period.

2. Identify the interest rate: This is the rate at which your investment will grow. It could be an annual interest rate, monthly, etc.

3. Identify the investment period: This is the length of time for which the money will be invested.

4. Use the formula for present value: The formula is PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate (expressed as a decimal), and n is the number of periods.

5. Calculate: Plug the future amount, interest rate, and investment period into the formula to calculate the present value. This will tell you how much money you would need to invest today to reach your desired future amount.

Knowee AI · Accepted Answer

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

Here's a step-by-step explanation:

1. Identify the future amount: This is the amount of money you want to have at the end of the investment period.

2. Identify the interest rate: This is the rate at which your investment will grow. It could be an annual interest rate, monthly, etc.

3. Identify the investment period: This is the length of time for which the money will be invested.

4. Use the formula for present value: The formula is PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate (expressed as a decimal), and n is the number of periods.

5. Calculate: Plug the future amount, interest rate, and investment period into the formula to calculate the present value. This will tell you how much money you would need to invest today to reach your desired future amount.

The amount of money that would have to be invested today at a given interest rate overa specified period in order to equal a future amount is called

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

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