CLEAR
Toprankers-Info

+91 7676564400

Mobile App

Get it on Google Play
Discussions
Tags:

Articles

Discussions
Submit Discussion
Sahil

· started a discussion

· 1 Months ago

Wrong solution (Question: 187150.0 )

It has to be calculation of present value in the question else answer is compounding.

Question:
In the ______ ,  the future value of all cash inflow at the end of time horizon at a particular rate of interest is calculated.
Options:
A)

Risk-free rate

B) Compounding technique
C) Discounting technique
D) Risk Premium
E) None of these
Solution:

Ans (c)

In the Discounting technique,  the future value of all cash inflow at the end of time horizon at a particular rate of interest is calculated.

Knowledge Expert

· commented

· 1 Months ago

Discounting is the correct answer because The method uses to know the future value of a present amount is known as Compounding. The process of determining the present value of the amount to be received in the future is known as Discounting. Compounding uses compound interest rates while discount rates are used in Discounting.
-logo
We at aim to provide most comprehensive content & test for practice which is carefully divided into various chapters and topics to help you focus on your weak areas.Our Practice mock test gives you unmatched analytics to help you realize your strong areas,time management and improvement areas.Our Short & Crisp notes on each topic will help you to quickly revise the topic along with the tips & tricks of the exams.
More About
-Info
-Info

Mobile App

Get it on Google Play
About Us Campus Ambassador Careers Contact Us Refund Policy

All Rights Reserved Top Rankers

User Policy
Disclaimer
Terms & Conditions