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zhuklara [117]
3 years ago
8

Hunter is going to receive $3,000 in one year and he wants to know its equivalent value today. The process of determining the an

swer is called:_______
a. discounting
b. compounding
c. pricing
d. rating
Business
1 answer:
denis23 [38]3 years ago
6 0

Answer:

a. discounting

Explanation:

We arrive at the Present Value from Future Value through the discounting process using the the appropriate discount rate. Likewise we arrive to the Future Value by compounding the Present Value using the appropriate discount rate.

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