One way to characterize the difference between compounding and discounting is to say that
A) compounding involves the assumption that the interest rate is zero,whereas discounting does not involve that assumption.
B) discounting involves the assumption that the interest rate is zero,whereas compounding does not involve that assumption.
C) the process of compounding produces a future value,whereas the process of discounting produces a present value.
D) the process of compounding produces a present value,whereas the process of discounting produces a future value.
Correct Answer:
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Q2: Suppose you put $500 into a bank
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Q4: Suppose the interest rate is 10 percent.Which
Q5: Discounting refers directly to
A)finding the present value
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Q10: If the interest rate is 7.5 percent,then
Q11: Imagine that someone offers you $X today
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Q105: If the interest rate is 4 percent,
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