Discounting is an arithmetic process whereby a future value sum decreases at a compounding interest rate over time to reach a present value.

Name: Discounting is an arithmetic process whereby a future value sum decreases at a compounding interest rate over time to reach a present value.
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This is an accurate definition of discounting, where the future value decreases as it is discounted back to its present value using a compounding interest rate.

Discounting Is an Arithmetic Process Whereby a Future Value Sum