Discounting means that interest earned each year,plus the principal,will be reinvested at the stated rate.

Name: Discounting means that interest earned each year,plus the principal,will be reinvested at the stated rate.
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Discounting refers to the process of determining the present value of a future amount, not reinvesting interest and principal. Reinvesting interest and principal at a stated rate is known as compounding.

Discounting Means That Interest Earned Each Year,plus the Principal,will Be