compound: Compounding and Discounting

In christianbitter/cbFinance: CBFinance - a collection of experiments on using R for financial data analysis.

Compounding and Discounting

Description

compounds some initial invest A for some time steps n using the interest rate r

Usage

compound(
  A = NULL,
  r = NULL,
  n = NULL,
  interval = 1L,
  simple = T,
  continuous = F
)

Arguments

A	initial amount
r	interest rate (in percent)
n	compounding steps, or compounding time horizon. For example, a yearly compounding would be n = 1, with an interval of interval = 1. Wheras a bi-yearly compounding over 1 year would be n = 1, interval = 2;
interval	the compounding interval (integer number) dividing the compounding steps n. Default 1L
simple	Use linear (default) or exponential compounding
continuous	should we use continuous compounding

Value

returns the compounded volume

Author(s)

christian bitter

christianbitter/cbFinance documentation built on Sept. 28, 2024, 4:54 p.m.