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
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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 However, the total compensation of $90.2 million has a net present value of just $3.6 million, using a 10% discount rate to reflect the time-value of money, the KMA analysis determined. Jennifer Van Grove, San Diego Union-Tribune, 30 July 2025 This involves estimating all future cash flows expected from an asset and then discounting them to arrive at their present value. Tomas Milar, Forbes.com, 21 July 2025 The fee is over multiple years, resulting in a net present value of between $400 million and $450 million, depending on the discount rate applied. Kurt Badenhausen, Sportico.com, 8 July 2025 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 19 Aug. 2025.

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