__________ is the method used to determine the present value of a sum to be received in the future.

Question

Quizplus · Accepted Answer

Discounting is the method used to determine the present value of a sum to be received in the future. Compounding refers to the growth of a sum of money over time through the addition of earned interest, and present value is the current value of a future sum of money, taking into account a specific interest rate and time period. The time value of money is the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

__________ Is the Method Used to Determine the Present Value