Calculating the present value of a future amount is called
A)interpolating.
B)discounting.
C)compounding.
D)regression analysis.

Question

Quizplus · Accepted Answer

The process of calculating the present value of a future amount is called discounting. This involves taking into account the time value of money and reducing the future amount to the equivalent value in today's dollars. Interpolation involves estimating values between two known data points. Compounding involves calculating the future value of an investment, while regression analysis is a statistical technique for analyzing the relationship between variables.

Calculating the Present Value of a Future Amount Is Called