Present value is a way of calculating what today’s money will be worth tomorrow.

In pension appraisals, the present value of a pension is sometimes calculated by interest rate.

Present value is often used in distribution of pensions.

Usually, present value is calculated by the prevailing interest rate over a period of time.

The present value can be used a leverage factor in property settlement agreements when, for example, one party accepts less for full payment now.

Resources: U.C.C. § 2A-103.