One Way to Characterize the Difference Between Compounding and Discounting

question 17

Multiple Choice

One way to characterize the difference between compounding and discounting is to say that

• A)compounding involves the assumption that the interest rate is zero,whereas discounting does not involve that assumption.
• B)discounting involves the assumption that the interest rate is zero,whereas compounding does not involve that assumption.
• C)the process of compounding produces a future value,whereas the process of discounting produces a present value.
• D)the process of compounding produces a present value,whereas the process of discounting produces a future value.

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Definitions:

Productivity

A measure of the efficiency of a person, machine, system, or industry in converting inputs into useful outputs.

Operations Manager

An Operations Manager is a professional responsible for overseeing, designing, and controlling the production process and business operations.

Maintenance Schedules

Predefined plans for performing maintenance activities on equipment, facilities, or software to ensure their optimal performance and to prevent failures.

Scientific Management Era

A period in management history focused on improving labor productivity through scientific methods, attributed to Frederick W. Taylor in the early 20th century.