iemisc (version 0.9.9)

FgivenP: Future value given Present value (Engineering Economics)

Description

Compute F given P

Usage

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

Value

FgivenP numeric vector that contains the future value(s) rounded to 2 decimal places

FP data.frame of both n (0 to n) and the resulting future 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

F is expressed as

$$F = P\left(1 + i\right)^n$$

F

the "future equivalent"

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 124, 142, 164-166.

Examples

library("iemisc")
# Example 4-3 from the Reference text (page 124)
FgivenP(8000, 4, 10, frequency = "annual") # the interest rate is 10%

FP(8000, 4, 10, frequency = "annual") # the interest rate is 10%


FgivenP(P = c(1000, 340, 23), n = c(12, 1.3, 3), i = c(10, 2, 0.3),
"annual")
# is is 10%, 2%, and 0.3%
# Can't use FP for this example


# Example 4-29 from the Reference text (page 165-166)
FgivenP(100, 10, 6, "quarter") # the interest rate is 6% per quarter

FP(100, 10, 6, "quarter") # the interest rate is 6% per quarter