Present value PV

{
  "id": "MLC-T-INS-002652",
  "term": "Present value PV",
  "field": "Insurance and risk management",
  "definition": "The current worth of a future sum of money or stream of cash flows, discounted at a specific rate of return. This calculation accounts for the time value of money, recognizing that money available today is worth more than the same amount in the future due to its potential earning capacity. It is used in insurance to value future liabilities, such as claims payments or annuity payouts.",
  "url": "https://mlchart.com/terminology/insurance/present-value-pv/"
}