iemisc (version 0.9.7)

AgivenG: Annual value given Gradient value (Engineering Economics)

Description

Compute A given G

Usage

AgivenG(G, n, i, frequency = c("annual", "semiannual", "quarter", "bimonth",
  "month", "daily"))

Arguments

G

numeric vector that contains the gradient value(s)

n

numeric vector that contains the period value(s)

i

numeric vector that contains the interest rate(s) as a percent

frequency

character vector that contains the frequency used to obtain the number of periods [annual (1), semiannual (2), quarter (4), bimonth (6), month (12), daily (365)]

Value

AgivenG numeric vector that contains the annual value(s) rounded to 2 decimal places

Details

$$A = G\left[\frac{1}{i} - \frac{n}{\left(1 + i\right)^n - 1}\right]$$

A

the "uniform series amount (occurs at the end of each interest period)"

G

the "uniform gradient amount"

i

the "effective interest rate per interest period"

n

the "number of interest periods"

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 142, 150, 152-154, 164, 166-167.

Examples

# NOT RUN {
library(iemisc)
# Example 4-20 from the Reference text (pages 153-154)
  AgivenG(1000, 4, 15, "annual") # the interest rate is 15%


# Example 4-31 from the Reference text (pages 166-167)
  AgivenG(1000, 4, 20, "semiannual") # the nominal interest rate is 20% compounded semiannually




# }