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

The complaint, filed in March, alleged Sneaker City breached its lease for past rent and fee balance of $105,826 and present value of future rents of over $500,373, court documents show. — Catherine Muccigrosso july 14, Charlotte Observer, 14 July 2026

Most retiring seniors ultimately collect benefits well exceeding their lifetime payroll tax contributions (even after adjusting for net present value, which incorporates inflation and an interest rate). — Jessica Riedl, The Atlantic, 6 July 2026

Another consideration is that a present value analysis is just one factor in deciding when to start Social Security benefits. — Steve Vernon, Forbes.com, 2 July 2026

The lump sum is equal to 70% of the difference between the net present value of their current adjustment and the net present value of a reduced one. — Mary Wagoner, Chicago Tribune, 28 May 2026

Word History

First Known Use

1831, in the meaning defined above

Rhymes for present value

• eigenvalue
• undervalue