Discounting Compounding Means That Interest Earned Each Year, Plus the Principal

question 108

True/False

Discounting Compounding means that interest earned each year, plus the principal, will be reinvested at the stated rate.
Changed as original answer incorrect.Discounting is the same as compounding but in different time order.(PV compounds to FV; FV discounts to PV)

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Definitions:

Royalty

Money that employees or others receive based on sales, for example an author or musician.

Percentage

A mathematical concept that represents a portion of 100, used in describing proportions and rates in various contexts.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.

Sales

The exchange of a commodity for money; the action of selling something.