AgivenPcont: Annual value given Present value [continuous] (Engineering...

In iemisc: Irucka Embry's Miscellaneous Functions

Annual value given Present value [continuous] (Engineering Economics)

Description

Compute A given P with interest compounded continuously

Usage

AgivenPcont(P, n, r)

Arguments

P	numeric vector that contains the present value(s)
n	numeric vector that contains the period value(s)
r	numeric vector that contains the continuously compounded nominal annual interest rate(s) as a percent

Details

A is expressed as

A = P\left[\frac{e^{rn}\left(e^{r} - 1\right)}{e^{rn} - 1}\right]

A

the "annual equivalent amount (occurs at the end of each year)"

P

the "present equivalent"

r

the "nominal annual interest rate, compounded continuously"

n

the "number of periods (years)"

Value

AgivenPcont numeric vector that contains the annual value(s) 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 169-170.

Examples

library(iemisc)

# Example for equation 4-34 from the Reference text (page 170)
AgivenPcont(1000, 10, 20) # 20\% interest

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