Accountancy, asked by rtausif273, 1 month ago

“Discounting is the reverse of compounding”-Explain the statement​

Answers

Answered by krimipatel6126st
1

Answer:

Discounting is the reverse of compounding. We reduce a future value to a present value by discounting. Discounting is an important concept for CBA; it makes cashflows occurring at different times algebraically comparable. Present (i.e., discounted) value is sometimes referred to as the capitalized value.

Explanation:

I hope it helps you

Similar questions