Answer:
Discounting
Step-by-step explanation:
The present value of a payment or strings of payments is the future worth of the payment at a later date.
Discounting, according to the question, can be defines as a process of determining the present value of a commodity or payments that are to be received at a later date.
It can also be called compound discounting. This is because it can also be used to determine the present value of a series of payments as well.
Present value is involves discounting the interest rate from the future amount.
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