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.
The deferrals in the deal give the contract a present value calculated at $68.6 million, per industry sources. Jonathan Granoff, Newsweek, 29 Jan. 2025 Don’t think that five years, $92.5 million guaranteed will turn out to be a good deal for the Jays, but heavy deferrals bring the deal’s present value closer to $70 million. Tony Blengino, Forbes, 21 Jan. 2025 Without even counting Operation Warp Speed (which produced the Covid vaccine), University of Chicago economist Casey Mulligan finds that the Trump administration reduced regulatory costs by almost $11,000 per household in present value. John C. Goodman, Forbes, 16 Jan. 2025 This method considers a company’s present value as the difference between the fair market value of its net assets and its liabilities. Lien De Pau, Forbes, 1 Jan. 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

Dictionary Entries Near present value

Cite this Entry

“Present value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/present%20value. Accessed 11 Feb. 2025.

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