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2 years ago

What is the process of determining the present value called?

Business

1 answer:

Naddika [18.5K]2 years ago

4 0

Answer:

Discounting

Explanation:

The present value of a payment or strings of payments is the future worth of the payment at a later date.

Discounting, according to the question, can be defines as a process of determining the present value of a commodity or payments that are to be received at a later date.

It can also be called compound discounting. This is because it can also be used to determine the present value of a series of payments as well.

Present value is involves discounting the interest rate from the future amount.

Cheers.

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Answer:

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Explanation:

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The value of bond of Morin Company can be worked out as follows:

Step 1

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PV = A × (1-(1+r)^(-n))/r

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Step 3

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= $536.80 + 463.19

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