PgivenFcont: Present value given Future value [continuous] (Engineering Economics)
Description
Compute P given F with interest compounded continuously
Usage
PgivenFcont(F, n, r)
Value
PgivenFcont numeric vector that contains the present 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
P is expressed as
$$P = Fe^{-rn}$$
P
the "present equivalent"
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.