Discounting Refers Directly to

question 53

Multiple Choice

Discounting refers directly to

• A)finding the present value of a future sum of money.
• B)finding the future value of a present sum of money.
• C)calculations that ignore the phenomenon of compounding for the sake of ease and simplicity.
• D)decreases in interest rates over time,while compounding refers to increases in interest rates over time.

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Definitions:

Debtor's Obligations

The responsibilities or duties a borrower must fulfill, such as repaying borrowed money, according to agreed-upon terms.

Chapter 7 Proceeding

A bankruptcy process providing for the liquidation of a debtor's non-exempt assets to pay off creditors.

Discharge

The completion, termination, or annulment of a legal duty or obligation, such as the payment of a debt or the performance of a contract.

Discharged Debt

Debt that has been forgiven or deemed uncollectable, freeing the debtor from the obligation to pay.