Visualization of Discounting Processes

Discounting is understood as an operation which replaces the stated value of an amount of cash with the 'present' value at a certain date in time. This interpretation is often supported by diagrams, however these are not always without error. Even less attractive is that these diagrams do not deal with the most important fact which is the relation to projection through forecasting.Such diagrams have been closely examined. In some cases the presence of forecasting could be seen, but with properties preferred by mathematicians and engineers. This therefore suggests that when speaking of projection only perpendicular projection should be taken into consideration, defined also as orthogonal or planimetric. We are convinced that these suggestions are simply mistaken, and that true forecasting is done with perspective projection.This work has shown that simple discounting is suited to a linear perspective. With regard to compound discounting, a hypothesis of the existence of a link with non-linear perspective was formulated. At the same time it was emphasized that perspective images in particular are suitable for verification.They may and should therefore supplement complicated formulas and lengthy columns of calculations. With the help of visual examples we also find out how to use perspective images to determine if they are realistic if the information contained in them has not been falsified