lifecontingencies (version 0.0.6)

real2Nominal: Function to switch from APR to nominal m-periods interest rate

Description

This functions switches from nominal to effective APR.

Usage

real2Nominal(i, m = 1)

Arguments

i

Annual effective interest rate.

m

Numbers of compounding period.

Value

• A numeric value

Details

The functtion follows the equation $\left( {1 + i} \right)^t = (1 - d)^{ - t} = \left( {1 + \frac{{{i^{\left( m \right)}}}}{m}} \right)^{m*t} = \left( 1 - \frac{{{d^{\left( m \right)}}}}{m} \right)^{ - m*t}$

References

Broverman, S.A., Mathematics of Investment and Credit (Fourth Edition), 2008, ACTEX Publications.

See Also

nominal2Real

Examples

#an APR of 12\% corresponds to an nominal interest rate compounded monthly of
real2Nominal(i=0.12, m = 12)