What is compound interest compare compound interest to, Ask an Expert

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What is compound interest? Compare compound interest to discounting.

Compound interest takes place while interest is earned on interest and on the original principal of an investment. Discounting is the opposite of compounding. Compound interest causes the value of a starting amount to increase at an increasing rate. Discounting sources the present value of a future amount to decrease at an increasing rate.

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Financial Management, Finance

Category:- Financial Management
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