TVM: Time Value of Money
In FinancialMath: Financial Mathematics for Actuaries

Description Usage Arguments Details Value Note See Also Examples

Solves for the present value, future value, time, or the interest rate for the accumulation of money earning compound interest. It can also plot the time value for each period.

1	TVM(pv=NA,fv=NA,n=NA,i=NA,ic=1,plot=FALSE)

`pv`	present value
`fv`	future value
`n`	number of periods
`i`	nominal interest rate convertible ic times per period
`ic`	interest conversion frequency per period
`plot`	tells whether or not to produce a plot of the time value at each period

j=(1+\frac{i}{ic})^{ic}-1

fv=pv*(1+j)^n

Returns a matrix of the input variables and calculated unknown variables.

Exactly one of pv, fv, n, or i must be NA (unknown).

cf.analysis

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TVM(pv=10,fv=20,i=.05,ic=2,plot=TRUE)

TVM(pv=50,n=5,i=.04,plot=TRUE)

               TVM
PV       10.000000
FV       20.000000
Periods  14.035517
Eff Rate  0.050625
i^(2)     0.050000
              TVM
PV       50.00000
FV       60.83265
Periods   5.00000
Eff Rate  0.04000