iemisc (version 0.5.0)

PgivenG: Present value given Gradient value (Engineering Economics)

Description

Compute P given G

Usage

PgivenG(G, n, i, frequency = c("annual", "semiannual", "quarter", "bimonth",
  "month", "daily"))

Arguments

G

numeric vector that contains the gradient 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

• PgivenG numeric vector that contains the present value(s) rounded to 2 decimal places

encoding

UTF-8

Details

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

[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 142, 150, 152-154.

Examples

library(iemisc)
# Example 4-20 from the Reference text (pages 153-154)
PgivenG(1000, 4, 15) # the interest rate is 15\%