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The only relationship between these two things is that it gives a consumer more product for less money. Discounting is taking an amount of money off a product and compounding is giving more than 1 product at the same price as 1.

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Q: What is the relationship between discounting and compounding?
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Related questions

Explain the difference between compounding and discounting and how they value the cash flows of the organization?

Compounding means that you are adding money to the capital. Discounting means that some of the cost is being taken away.


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The discounting principle in managerial economic is the opposite of compounding. It is based on the present value of a sum of money you are getting in the future, the discount rate and the frequency.


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The difference between factoring and invoice discounting is how public the third party makes themselves to a companies customers. With factoring customers are likely to notice the third party, and invoice discounting will leave most customers unaware of a third party.


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