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Discounting Homework help

Discounting is a financial system in which a debtor achieves the authority to delay the payments to a creditor, for a definite period of time, in exchange for a fee or charge. Essentially, the party that owes cash in the current purchases the right to latency the payment until some prospect date. The charge, or discount, is the difference between the original amounts owed in the current and the amount that has to be paid in the prospect to settle the debt.

 

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