iemisc (version 0.9.9)

SimpIntPaid: Simple Interest Paid (Engineering Economics)

Description

Computes the total amount paid at the end of n periods using simple interest

Usage

SimpIntPaid(P, n, i)

Value

SimpIntPaid numeric vector that contains the total amount paid at the end of n periods 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 whole number or decimal

Details

Simple Interest is expressed as

$$I = Pni$$

$$S_n = P + I$$

or

$$S_n = P\left(1 + ni\right)$$

P

the "principal amount (lent or borrowed)"

\(S_n\)

the "total amount paid back"

I

the "simple interest"

i

the "interest rate per interest period"

n

the "number of interest periods"

References

1. Chinyere Onwubiko, An Introduction to Engineering, Mission, Kansas: Schroff Development Corporation, 1997, page 205-206.

2. William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling, Engineering Economy, Fourteenth Edition, Upper Saddle River, New Jersey: Pearson/Prentice Hall, 2009, page 116.

Examples

library("iemisc")
# Example for equation 4-1 from the Sullivan Reference text (page 116)
SimpIntPaid(1000, 3, 10) # the interest rate is 10%