FinancialMath (version 0.1.1)

TVM: Time Value of Money

Description

Solves for the present value, future value, time, or the interest rate for the accumulation of money earning compound interest. It can also plot the time value for each period.

Usage

TVM(pv=NA,fv=NA,n=NA,i=NA,ic=1,plot=FALSE)

Arguments

pv

present value

fv

future value

n

number of periods

i

nominal interest rate convertible ic times per period

ic

interest conversion frequency per period

plot

tells whether or not to produce a plot of the time value at each period

Value

Details

$j=(1+\frac{i}{ic})^{ic}-1$

$fv=pv*(1+j)^n$

See Also

cf.analysis

Examples

TVM(pv=10,fv=20,i=.05,ic=2,plot=TRUE)

TVM(pv=50,n=5,i=.04,plot=TRUE)