iemisc (version 0.5.0)

PgivenFivary: "Present equivalent of a series of future cash flows subject to varying interest rates" (Engineering Economics)

Description

Compute P given F and i that varies

Usage

PgivenFivary(Fn, ik, k)

Arguments

Fn

numeric vector that contains the future value(s) at the end of a period n

ik

numeric vector that contains the effective interest rate(s) per period as a percent for the kth period

k

numeric vector that contains the kth period values

Value

• PgivenFivary numeric vector that contains the present value(s)

encoding

UTF-8

source

1. r - Add a Column to a Dataframe From a List of Values - Stack Overflow answered by Matthew Plourde on Jun 21 2012. Seehttp://stackoverflow.com/questions/11130037/add-a-column-to-a-dataframe-from-a-list-of-values/11130178.
2. r - Why does is.vector() return TRUE for list? - Stack Overflow answered by Andrie on May 17 2011. Seehttp://stackoverflow.com/questions/6032772/why-does-is-vector-return-true-for-list/6032909.

Details

P is expressed as

$$P = \frac{F_n}{\prod \limits_{k=1}^n{\left(1 + i_k\right)}}$$

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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 142, 162.

Examples

library(iemisc)
# Example for equation 4-31 from the Reference text (page 162)
PgivenFivary(Fn = 1000, ik = c(10, 12, 13, 10), k = 1)
# i1 is 10\%, i2 is 12\%, i3 is 14\%, and i4 is 10\% & k = 1 year