__________ is the arithmetic process whereby a future value decreases at a compound interest rate over time to reach a present value.
A) Discounting
B) Future value
C) Inflation
D) Compounding

Question

Quizplus · Accepted Answer

Discounting involves calculating the present value of a future sum of money or cash flow, based on a specified rate of return or discount rate. This process involves reducing the value of the future amount by a compound interest rate to arrive at the present value.

__________ Is the Arithmetic Process Whereby a Future Value Decreases