Discounting is the process by which interest on an investment accumulates,and then earns interest itself for the remainder of the investment period. $$\frac { \rho \lambda } { \mu - \lambda }$$

Question

Quizplus · Accepted Answer

Discounting is the process of determining the present value of a future amount of money, not the accumulation of interest. The description given is for compounding, not discounting.

Discounting Is the Process by Which Interest on an Investment ρλμ−λ\frac { \rho \lambda } { \mu - \lambda }μ−λρλ​

Discounting Is the Process by Which Interest on an Investment $\frac { \rho \lambda } { \mu - \lambda }$