What is the relationship between compounding and discounting?

 

In your initial response please answer all questions:

1) What is the “time value of money”? Why does it exist?

2) What is the relationship between compounding and discounting?

3) What is an annuity? Provide several examples of annuities. Distinguish between an annuity and perpetuity.

I have attached this weeks reading to use for reference

What is the relationship between compounding and discounting?
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