Answer:
Present value, is the right answer.
Explanation:
“Present value” is the right answer because the present value is calculated on the basis of future cash flows and the discounted rates. Here the discount rate is the interest rate that is earned on the present amount. Moreover, the present value in the case of one-time cash flow in the future is calculated by the given formula. Present value = Future value / (1 + r)^n.
Here, r stands for interest rate and n stands for the number of compounding periods.
