What's the amount of money you have now called?

The amount of money you have now is referred to as its present value. Present value represents the current worth of a sum of money or stream of cash flows that will be received or paid in the future, discounted at a specific interest rate to reflect the time value of money. This concept is fundamental in finance and appraisal because it allows individuals to understand how much their current assets or cash flows are worth today relative to their future value. By focusing on the present value, you can assess the effectiveness of investments, evaluate loan options, and determine the viability of various financial decisions.

While the other terms are related to finance and investment, they refer to different concepts. An investment typically refers to the allocation of resources for future profit; future value represents the estimated worth of a sum of money at a specific time in the future, after accounting for interest or returns; and principal is the original sum of money invested or loaned, not accounting for any interest earned or owed. Therefore, present value is the most accurate term for the amount of money available at the current moment.