Which example indicates discounting?
A)Looking for less inexpensive options when shopping
B)Figuring out how much money to invest now to have a certain amount in the future
C)Shoplifting
D)All of the options are correct.

Question

Quizplus · Accepted Answer

Discounting refers to determining the present value of a future amount of money or stream of cash flows given a specific rate of return. It is a financial concept used to compare the value of money now with the value of money in the future. Option B, figuring out how much money to invest now to have a certain amount in the future, directly relates to this concept by calculating the present value of a future sum.

Which Example Indicates Discounting