AgivenF: Annual value given Future value (Engineering Economics)

In iemisc: Irucka Embry's Miscellaneous Functions

Annual value given Future value (Engineering Economics)

Description

Compute A given F

Usage

AgivenF(
  F,
  n,
  i,
  frequency = c("annual", "semiannual", "quarter", "bimonth", "month", "daily")
)

AF(
  F,
  n,
  i,
  frequency = c("annual", "semiannual", "quarter", "bimonth", "month", "daily")
)

Arguments

F	numeric vector that contains the future value(s)
n	numeric vector that contains the period value(s)
i	numeric vector that contains the interest rate(s) as a percent
frequency	character vector that contains the frequency used to obtain the number of periods [annual (1), semiannual (2), quarter (4), bimonth (6), month (12), daily (365)]

Details

A is expressed as

A = F\left[\frac{i}{\left(1 + i\right)^n - 1}\right]

A

the "uniform series amount (occurs at the end of each interest period)"

F

the "future equivalent"

i

the "effective interest rate per interest period"

n

the "number of interest periods"

Value

AgivenF numeric vector that contains the annual value(s) rounded to 2 decimal places

AF data.frame of both n (0 to n) and the resulting annual values rounded to 2 decimal places

Author(s)

Irucka Embry

References

William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling, Engineering Economy, Fourteenth Edition, Upper Saddle River, New Jersey: Pearson/Prentice Hall, 2009, page 135-136, 142, 164.

Examples

library(iemisc)

# Example for equation 4-12 from the Reference text (page 135-136)
AgivenF(309*10^6, 60, 0.5, "month")

# the interest rate is 0.5\% per month and n is 60 months
# "$4.4187 million per month" is the answer

AF(309*10^6, 60, 0.5, "annual")
# the interest rate is 0.5\% per month and n is 60 months

iemisc documentation built on Sept. 25, 2023, 5:09 p.m.