iemisc (version 0.9.9)

AgivenFcont: Annual value given Future value [continuous] (Engineering Economics)

Description

Compute A given F with interest compounded continuously

Usage

AgivenFcont(F, n, r)

Value

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

Arguments

F

numeric vector that contains the future value(s)

n

numeric vector that contains the period value(s)

r

numeric vector that contains the continuously compounded nominal annual interest rate(s) as a percent

Details

A is expressed as

$$A = F\left[\frac{e^{r} - 1}{e^{rn} - 1}\right]$$

A

the "annual equivalent amount (occurs at the end of each year)"

F

the "future equivalent"

r

the "nominal annual interest rate, compounded continuously"

n

the "number of periods (years)"

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 169.

Examples

library("iemisc")
AgivenFcont(300, 2, 11) # 11% interest