# How are Discounting and Compounding Related

You may have such questions as What Is Financial Compounding and How Are Discounting And Compounding Related,or you may also seek several helpful information about How To Calculate Compounding Discounting. Besides,you may be interested in answers related to Relationship between Discounting and Compounding,too. Read more as following:

Discounting and compounding can be related as to discounting can be compounded at a daily rate or monthly rate. It works much like compounding interest only the opposite.

TreyReply:Mommy To Two PreemiesReply:I filed my tax return and was expecting a refund of $418.24. Today I received a cheque for $377.54. On the assessment they had a separate line item called “Refund Transfer” listed as $40.70, which was deducted from the $418 to give me the $377. Anyone know what this is?

WefReply:CAGR is the abbrevation of Compounded Annual Growth Rate related to the financials of the company.

Jennifer MilesReply:If I has an unfunded pension liability of $650 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.4 percent, what is the present value of this liability?

PritiReply:how is the future value related to the present value of a single sum?

Impure IntentionsReply:The US government issures a 1-year bond with a face value of $5000 and a zero coupon. If the market interest rate is 20 percent. What will the market price of the bond be? If the bond price falls by 5%, what happens to its yield?

KourtneyReply:Patty666Reply:Stephanie Hershey-buckleyReply:A.Internal rate.

B.Average rate.

C.Prime rate.

D.Discount rate.

E.Compound rate.

JennferReply:Define the concepts of compounding and discounting. Use future values and present values to explain how these concepts are related.