Answer to Question #203746 in Financial Math for Yoyo

Question #203746

Compare with examples the difference between compounding and discounting.


1
Expert's answer
2021-06-08T14:30:14-0400

Compounding and Discounting are simply opposite to each other. Compounding converts the present value into future value and discounting converts the future value into present value. So, we can say that if we reverse compounding it will become discounting.



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