Lecture 4: Allocating Resources Over Time (textbook Ch.4 referencebook ch.5) Objective Explain the concept of compounding and discounting Know how these concepts are applied in financial decision THE COURSE OF FINANCE 2017 SPRING STTULecture 4: Allocating Resources Over Time (textbook Ch.4\referencebook ch.5) THE COURSE OF FINANCE 2017 SPRING SJTU 1 Objective u Explain the concept of compounding and discounting u Know how these concepts are applied in financial decision