iemisc (version 0.5.0)

SimpIntPaid: Simple Interest Paid (Engineering Economics)

Description

Computes the total amount paid at the end of n periods using simple interest

Usage

SimpIntPaid(P, n, i)

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 whole number or decimal

Value

• SimpIntPaid numeric vector that contains the total amount paid at the end of n periods rounded to 2 decimal places

encoding

UTF-8

Details

Simple Interest is expressed as

$$I = Pni$$

$$S_n = P + I$$

or

$$S_n = P\left(1 + ni\right)$$

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References

1. Chinyere Onwubiko,An Introduction to Engineering, Mission, Kansas: Schroff Development Corporation, 1997, page 205-206.
2. William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling,Engineering Economy, Fourteenth Edition, Upper Saddle River, New Jersey: Pearson/Prentice Hall, 2009, page 116.

Examples

library(iemisc)
# Example for equation 4-1 from the Sullivan Reference text (page 116)
SimpIntPaid(1000, 3, 10) # the interest rate is 10\%