PV

Accounting Dictionary

PV

Present Value.

PV is the dollar amount of money received today that would equal the value of money received in the future. Let’s say the interest rate id 5%. If you had $1000 you could put it in the bank and after a year your $1000 would have grown to $1050. Therefore $1000 received today is equal in value to $1050 received in a year. In this case, $1000 is the present value of $1050.

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