Discount
From Wikipedia, the free encyclopedia
(Redirected from Discounts)
See also: Discounts and allowances
For the band of the same name, see Discount (band).
In finance and economics, discounting is the process of finding the present value of an amount of cash at some future date, and along with compounding cash forms the basis of time value of money calculations. The discounted value of a cash flow is determined by reducing its value by the appropriate discount rate for each unit of time between the time when the cashflow is to be valued to the time of the cash flow. Most often the discount rate is expressed as an annual rate.
