EconoTerms P

Present value
      This is a value that, once interest is added, will end up as the desired amount. See the Finite Math portion of our site for more details.

Profit
      This is the difference between revenue and cost, and it's what everyone wants. For example, let's say a business spends $1000 in order to make 100 books. It then sells these books at $20 each. That means its revenue, or the money it takes in, is $2000. The profit is revenue - cost, or $2000 - $1000, which is $1000.

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