iemisc (version 0.9.8)

PgivenFcont: Present value given Future value [continuous] (Engineering Economics)

Description

Compute P given F with interest compounded continuously

Usage

PgivenFcont(F, n, r)

Arguments

F

numeric vector that contains the future 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

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

Details

P is expressed as

$$P = Fe^{-rn}$$

P

the "present equivalent"

F

the "future 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.

Examples

# NOT RUN {
library("iemisc")
PgivenFcont(1000, 9, 7) # the interest rate is 7%




# }