You invest a certain amount of money today.The process of determining how much money that investment will produce in the future is called ________.
A)discounting
B)compounding
C)present value
D)annuitizing the cash flow

Question

Quizplus · Accepted Answer

Compounding is the process of determining how much money an investment will produce in the future. It involves calculating the future value of an investment by adding the interest earned over time to the principal amount invested. The other options, discounting, present value, and annuitizing the cash flow, are related to different aspects of investment analysis and calculation.

You Invest a Certain Amount of Money Today