Question

which financial concept is used to evaluate the current value of assets expected in the future?
future value
present value
old tax laws
real interest rates
what important financial principle is the basis for the concept of time - value?
the significance of budgeting
the potential for investment and growth
the accuracy of financial ratios
the management of present value calculations
what does it mean when an individual has a cash deficit in personal finance?
drawing down net worth over time
managing investments effectively
increasing net worth over time
saving money for future goals

Explanation:

1. Present value discounts future cash - flows to today's value.
2. Time value of money is based on potential to invest and grow funds.
3. A cash deficit in personal finance means using net worth over time.

Answer:

1. B. Present value
2. B. The potential for investment and growth
3. A. Drawing down net worth over time