Q316
Process of calculating future value of money from present value is classified as
A.
compounding
AnswerB.
discounting
C.
money value
D.
stock value
Answer: Option A
Solution
Answer: Option A
Solution:
Process of calculating future value of money from present value is classified as compounding. Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.