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Q: Why the proses of discounting and compounding are related?
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Discounting is compounding in reverse?

yes


Principles of compounding vs discounting?

Compounding has to do with adding things together to create a larger version of the original. Discounting is about cutting things such as cutting prices.


Explain the difference between compounding and discounting and how they value the cash flows of the organization?

Compounding means that you are adding money to the capital. Discounting means that some of the cost is being taken away.


What is the inverse of compounding interest?

discounting..ie....1/(1+r)^n


What is the relationship between discounting and compounding?

The only relationship between these two things is that it gives a consumer more product for less money. Discounting is taking an amount of money off a product and compounding is giving more than 1 product at the same price as 1.


What is discounting principles in managerial economic?

The discounting principle in managerial economic is the opposite of compounding. It is based on the present value of a sum of money you are getting in the future, the discount rate and the frequency.


What is the difference between compounding and discounting?

Compounding finds the future value of a present value using a compound interest rate. Discounting finds the present value of some future value, using a discount rate. They are inverse relationships. This is perhaps best illustrated by demonstrating that a present value of some future sum is the amount which, if compounded using the same interest rate and time period, results in a future value of the very same amount.


What are the Discounting and Non-discounting Criteria of Capital Budgeting?

IRR


How do you explain discounting of accounting policies?

Explain discounting of accounting policies


Mechanics of compounding in an annuity?

mechanics and compounding


Does annual compounding pay more money than daily compounding?

It all depends with the amount of the annual or daily compounding. In most cases it is however the daily compounding that pays more than the annual compounding.


Are the terms off-price and discounting interchangeable?

Are the terms off-price and discounting interchangeable? Explain.