Discounting is an arithmetic process whereby a future value decreases at a compound interest rate over time to reach a present value.

Name: Discounting is an arithmetic process whereby a future value decreases at a compound interest rate over time to reach a present value.
Brand: Quizplus
Rating: 4.7 (49 reviews)

Question

Quizplus · Accepted Answer

This is the correct definition of discounting, where a future value is reduced or discounted to its present value using a compound interest rate.

Discounting Is an Arithmetic Process Whereby a Future Value Decreases