healthiar (version 0.2.1)

get_inflation_factor: Get inflation factor

Description

This function calculates the inflation factor based on inflation rate.

Usage

get_inflation_factor(n_years, inflation_rate = NULL)

Value

This function returns the numeric inflation factor.

Arguments

n_years

Numeric value referring to number of years in the future to be considered in the discounting and/or inflation. Be aware that the year 0 (without discounting/inflation, i.e. the present) is not be counted here. If a vector is entered in the argument impact, n_years does not need to be entered (length of impact = n_years + 1).

inflation_rate

Numeric value between 0 and 1 referring to the annual inflation (increase of prices). Only to be entered if nominal (not real) discount rate is entered in the function. Default value = NULL (assuming no nominal discount rate).

Author

Alberto Castro & Axel Luyten

Details

Equation inflation factor (without discounting)

$$inflation\_factor = (1 + inflation\_rate)^{n\_years}$$

Examples

get_inflation_factor(
  inflation_rate = 0.02,
  n_years = 5
)