What shows the present worth of a series of future payments?

The concept of present worth reflects the current value of a series of future cash flows, which is critical in various financial analyses, particularly in real estate and investment decisions. The present worth of $1 per period is a foundational element in financial mathematics. It essentially refers to the lump-sum value today, of receiving $1 at a future date, taking into account a specific interest rate over a certain number of periods. This concept is crucial when evaluating future payments or inflows, as it enables one to understand the value of those payments in today's terms, incorporating the time value of money.

This approach allows for the assessment of cash flows that occur at different times, highlighting that money available now has greater value than the same amount in the future due to its potential earning capacity. Thus, the present worth of $1 per period effectively provides a straightforward method for expressing the value of future payments, making it the correct choice in this context.

The other options, while relevant in various financial contexts, do not specifically represent the present worth of a series of future payments. Contingency tables are used in statistics for decision-making under uncertainty but do not convey present value concepts. An amortization schedule outlines the repayment of debt, showing how payments are divided between principal