What term describes the present worth of a single future payment of $1?

The term that accurately describes the present worth of a single future payment of $1 is known as Present Value. This financial concept is foundational in the field of finance and appraisal because it quantifies how much a future amount of money is worth right now, given a specific rate of interest or discount rate.

In other words, Present Value reflects the principle of the time value of money, which asserts that a dollar today is worth more than a dollar in the future due to its potential earning capacity. When calculating the Present Value of a future payment, you discount the future amount back to the present using a particular interest rate. This allows appraisers and financial analysts to make informed decisions regarding investments and valuation, as it provides insight into the worth of future cash flows in today's terms.

The terms Future Value, Future Income Factor, and One-Time Payment Value do not accurately represent the concept of determining the current worth of a future payment. Future Value refers to the amount of money that an investment made today will grow to over time, rather than its worth today. Future Income Factor typically relates to the future cash flows generated by an investment rather than a single future payment. One-Time Payment Value is not a standard term used in finance or appraisal, making it less