iemisc (version 0.9.9)

AgivenP: Annual value given Present value (Engineering Economics)

Description

Compute A given P

Usage

AgivenP(
  P,
  n,
  i,
  frequency = c("annual", "semiannual", "quarter", "bimonth", "month", "daily")
)
AP(
  P,
  n,
  i,
  frequency = c("annual", "semiannual", "quarter", "bimonth", "month", "daily")
)

Value

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

AP data.frame of both n (0 to n) and the resulting annual values rounded to 2 decimal places

Arguments

P

numeric vector that contains the present 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)]

Details

A is expressed as

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

A

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

P

the "present equivalent"

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 136, 142, 164, 166.

Examples

library("iemisc")
# Example for equation 4-14 from the Reference text (page 136)
AgivenP(17000, 4, 1, "annual")
# the interest rate is 1% per month and n is 4 months

AP(17000, 4, 1, "annual")
# the interest rate is 1% per month and n is 4 months


# Example 4-30 from the Reference text (page 166)
AgivenP(10000, 5, 12, "month")
# the interest rate is 12% compounded monthly for 5 years

AP(10000, 5, 12, "month")
# the interest rate is 12% compounded monthly for 5 years