The process of finding the present value of some future amount is often called:
A) Growth.
B) Discounting.
C) Accumulation.
D) Compounding.
E) Reduction.

Question

Quizplus · Accepted Answer

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.

The Process of Finding the Present Value of Some Future