iemisc (version 0.9.9)

PgivenF: Present value given Future value (Engineering Economics)

Description

Compute P given F

Usage

PgivenF(
  F,
  n,
  i,
  frequency = c("annual", "semiannual", "quarter", "bimonth", "month", "daily")
)
PF(
  F,
  n,
  i,
  frequency = c("annual", "semiannual", "quarter", "bimonth", "month", "daily")
)

Value

PgivenF numeric vector that contains the present value(s) rounded to 2 decimal places

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

Arguments

F

numeric vector that contains the future 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

P is expressed as

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

P

the "present equivalent"

F

the "future 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 128, 142, 164.

Examples

library("iemisc")
# Example 4-4 from the Reference text (page 128)
PgivenF(10000, 6, 8, "annual") # the interest rate is 8%

PF(10000, 6, 8, "annual") # the interest rate is 8%