iemisc (version 0.9.8)

AgivenPcont: Annual value given Present value [continuous] (Engineering Economics)

Description

Compute A given P with interest compounded continuously

Usage

AgivenPcont(P, n, r)

Arguments

P

numeric vector that contains the present value(s)

n

numeric vector that contains the period value(s)

r

numeric vector that contains the continuously compounded nominal annual interest rate(s) as a percent

Value

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

Details

A is expressed as

$$A = P\left[\frac{e^{rn}\left(e^{r} - 1\right)}{e^{rn} - 1}\right]$$

A

the "annual equivalent amount (occurs at the end of each year)"

P

the "present equivalent"

r

the "nominal annual interest rate, compounded continuously"

n

the "number of periods (years)"

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 169-170.

Examples

# NOT RUN {
library("iemisc")
# Example for equation 4-34 from the Reference text (page 170)
AgivenPcont(1000, 10, 20) # 20% interest




# }

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