iemisc (version 0.5.0)

AgivenP: Annual value given Present value (Engineering Economics)

Description

Compute A given P

Usage

AgivenP(P, n, i, frequency = c("annual", "semiannual", "quarter", "bimonth",
  "month", "daily"))
AP(P, n, i, frequency = c("annual", "semiannual", "quarter", "bimonth",
  "month", "daily"))

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 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)]

Value

• AgivenP numeric vector that contains the annual value(s) rounded to 2 decimal places

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

encoding

UTF-8

Details

A is expressed as

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

[object Object],[object Object],[object Object],[object Object]

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 136, 142, 164, 166.

Examples

library(iemisc)
# Example for equation 4-14 from the Reference text (page 136)
AgivenP(17000, 4, 1, "annual")
# the interest rate is 1\% per month and n is 4 months

AP(17000, 4, 1, "annual")
# the interest rate is 1\% per month and n is 4 months


# Example 4-30 from the Reference text (page 166)
AgivenP(10000, 5, 12, "month")
# the interest rate is 12\% compounded monthly for 5 years

AP(10000, 5, 12, "month")
# the interest rate is 12\% compounded monthly for 5 years