What is the main difference between compounding and discounting?

• A. Compounding is used for loans, while discounting is used for investments.
• B. Compounding calculates future value, while discounting calculates present value.
• C. Compounding is a short-term calculation, while discounting is long-term.
• D. Compounding uses a fixed interest rate, while discounting uses a variable interest rate.

Answer: (B)