discounting

[dis-koun-ting]

discounting Definition

the act of determining the present value of a future payment or a stream of future payments, using a specified interest rate.

Using discounting: Examples

Take a moment to familiarize yourself with how "discounting" can be used in various situations through the following examples!

  • Example

    Discounting is used to determine the current value of future cash flows.

  • Example

    The bank offers a discounting service for its customers.

  • Example

    The company uses discounting to evaluate investment opportunities.

discounting Synonyms and Antonyms

📌

Summary: discounting in Brief

'Discounting' [dis-koun-ting] is the process of determining the present value of future payments using a specified interest rate. It is commonly used to evaluate investment opportunities and determine the current value of future cash flows.