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:

Net Change

The difference between the closing price of a security on the trading day and its closing price on the previous trading day.

Wall Street Journal

A well-known international daily newspaper focusing on finance, business, and economic news, as well as market developments.

SOX

Refers to the Sarbanes-Oxley Act of 2002, a United States federal law that set new or expanded requirements for all U.S. public company boards, management and public accounting firms, aiming to protect investors from fraudulent financial reporting.

Public Accounting Firms

Professional services organizations that provide accounting, audit, tax, and consulting services to businesses and individuals.