igivenPFn: Interest rate given Future value, Number of periods, and...

In iemisc: Irucka Embry's Miscellaneous Functions

Interest rate given Future value, Number of periods, and Present value (Engineering Economics)

Description

Compute i given F, n, and P

Usage

igivenPFn(P, F, n)

Arguments

P	numeric vector that contains the present value(s)
F	numeric vector that contains the future value(s)
n	numeric vector that contains the period value(s)

Details

i is expressed as

i = \sqrt[n]{\frac{F}{P}} - 1

i

the "effective interest rate per interest period"

F

the "future equivalent"

P

the "present equivalent"

n

the "number of interest periods"

Value

i numeric vector that contains the effective interest rate as a percent 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 128-129, 142.

Examples

# Example for equation 4-6 from the Reference text (page 128)

library(iemisc)

igivenPFn(P = 500, F = 1000, n = 10)

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