The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:

A. Discounting
B. Compounding
C. Factorization
D. None of the given options

Future value is discounted back at the given interest rate to find out the current worth of the amount to be received in future..

Correct Answer: Discounting ✔

Last Updated: August 17, 2017