iemisc (version 0.9.9)

igivenPFn: Interest rate given Future value, Number of periods, and Present value (Engineering Economics)

Description

Compute i given F, n, and P

Usage

igivenPFn(P, F, n)

Value

i numeric vector that contains the effective interest rate as a percent rounded to 2 decimal places

Arguments

P

numeric vector that contains the present value(s)

F

numeric vector that contains the future value(s)

n

numeric vector that contains the period value(s)

Details

i is expressed as

$$i = \sqrt[n]{\frac{F}{P}} - 1$$

i

the "effective interest rate per interest period"

F

the "future equivalent"

P

the "present equivalent"

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 128-129, 142.

Examples

library("iemisc")
# Example for equation 4-6 from the Reference text (page 128)
igivenPFn(P = 500, F = 1000, n = 10)