The concept of discounting
ID:CVTCOD
Video Overview
In this tutorial we will discuss the concept of discounting. Why do we need to discount money? We need to discount the value of money in order to compare money in the future to money today. We need to be able to calculate the amount of money an investment will pay out at the future predetermined date of maturation taking into account the compound interest rate, and then in real terms be able to decide whether this was a good investment, i.e. whether our money has grown in real terms.
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