Description Usage Arguments Details Value Warning Note Author(s) References See Also Examples

View source: R/4_financialFunctions.R

This function return present values for decreasing annuities - certain.

1 | ```
decreasingAnnuity(i, n,type="immediate")
``` |

`i` |
A numeric value representing the interest rate. |

`n` |
The number of periods. |

`type` |
The Payment type, either |

A decreasing annuity has the following flows of payments: n, n-1, n-2, ..., 1, 0.

A numeric value reporting the present value of the decreasing cash flows.

The function is provided as is, without any guarantee regarding the accuracy of calculation. The author disclaims any liability for eventual losses arising from direct or indirect use of this software.

This function calls `presentValue`

function internally.

Giorgio A. Spedicato

Broverman, S.A., Mathematics of Investment and Credit (Fourth Edition), 2008, ACTEX Publications.

`annuity`

,`increasingAnnuity`

,`DAxn`

1 2 3 4 5 6 | ```
#the present value of 10, 9, 8,....,0 payable at the end of the period
#for 10 years is
decreasingAnnuity(i=0.03, n=10)
#assuming a 3% interest rate
#should be
sum((10:1)/(1+.03)^(1:10))
``` |

Embedding an R snippet on your website

Add the following code to your website.

For more information on customizing the embed code, read Embedding Snippets.