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    5. The process of finding present value of a future amount is called:

    Question

    The process of finding present value of a future amount

    is called:
    A Compounding Correct Answer Incorrect Answer
    B Depreciation Correct Answer Incorrect Answer
    C Amortization Correct Answer Incorrect Answer
    D Discounting Correct Answer Incorrect Answer

    Solution

    Explanation: Discounting is the method of calculating the present value of a future sum.

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