Question

expalin progression with specific applications to compounding and discounting techniques​

Answer 1

Step-by-step explanation:

$\huge{\underline{\bold{\pink{Answer:⤵}}}}$

The process of determining the present value of the amount to be received in the future is known as Discounting. Compounding uses compound interest rates while discount rates are used in Discounting. Compounding of a present amount means what will we get tomorrow if we invest a certain sum today.

Answer 2

Step-by-step explanation:

Time Value of Money says that the worth of a unit of money is going to be changed in future. Put simply, the value of one rupee today will be decreased in future. The whole concept is about the present value and future value of money. There are two methods used for ascertaining the worth of money at different points of time, namely, compounding and discounting. Compounding method is used to know the future value of present money. Conversely, discounting is a way to compute the present value of future money.