Asked by Daniel Alvarez on Jun 25, 2024
Verified
The process of finding the present value of some future amount is often called:
A) Growth.
B) Discounting.
C) Accumulation.
D) Compounding.
E) Reduction.
Discounting
The process of determining the present value of a future amount of money or stream of cash flows given a specific rate of return.
- Implement the principles of present value and discounting within the context of investment decision-making.
Verified Answer
ND
Nicole, Deaf_Life_Jun 29, 2024
Final Answer :
B
Explanation :
Discounting is the process of determining the present value of a future amount by applying a discount rate. It essentially reverses the process of compounding, where you find the future value of a present amount.
Learning Objectives
- Implement the principles of present value and discounting within the context of investment decision-making.