Present value computations are also referred to as

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Present value computations are also known as discounting, because they involve calculating the current value of a future sum of money by discounting it at a given interest rate. This is the opposite of compounding, which involves calculating the future value of a present sum of money. Add-on interest and simple interest are different types of interest calculations, and annuities refer to a series of payments or receipts made at regular intervals.

Present Value Computations Are Also Referred to as