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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
While lower rates do result in a higher present value being ascribed to future earnings, the current growth names, largely tied to the AI investment trade, have proven their ability to grow regardless of the interest rate environment. Zev Fima, CNBC, 21 Aug. 2025 Net present value looks at the current value of future dollars. Jennifer Van Grove, San Diego Union-Tribune, 20 July 2025 Add workforce participation gains and education dividends and the net present value climbs further and the operational risks are equally concrete. Sughnen Yongo, Forbes.com, 18 July 2025 The payments’ present value is around $500 million before taxes, slated to start no later than January 1, 2026. Alexandra Harrell, Sourcing Journal, 3 Sep. 2019 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

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Cite this Entry

“Present value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/present%20value. Accessed 29 Aug. 2025.

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