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Answer:

Compounding

Discounting

Explanation:

Compounding is simply the process of moving forward or forsight along the timeline to know,get or determine a cash flow's value in the future that is its future value. If you must calculate a cash flow's future value, you must compound it. It is also said to be the converting from a earlier point to a later. It simply do not have to be future, but maybe/actually moving forward.it uses future value.

Discounting is the process of finding the approximate value today of a future cash flow . For one to calculate the value of a future cash flow at an earlier point in time, we must discount it. It is simply the converting of money from later point to earlier point. That is moving backwards.

Compounding is the process of going from present value to future value, whereas discounting is finding the present value of some future amount.

What is discounting and compounding?

Compounding:

Compounding is merely defined as the process of moving forward or foresight along the timeline to know, get or ascertain a cash flow's value in the future that is its future value.

If a person need to compute the future value of a cash flow, he/she must compound it, and It's also referred to as converting from one point to another.

It doesn't have to be in the future, but it should be moving ahead and makes advantage of future worth.

Discounting:

Discounting is defined as the process of detecting the nearest value today of a future cash flow.

We must discount a future cash flow in order to evaluate its worth at a later point in time, and It is essentially the exchange of money from one point to another.

Therefore, the correct fill in the blanks are compounding and discounting.

Learn more about compounding, refer to:

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