lifecontingencies (version 0.9.2)

interest2Intensity: Function to obtain the force of interest from APR

Description

This function calculates the force of interest from an annual effective interest rate.

Usage

interest2Intensity(i)

Arguments

i

A numeric value representing the APR

Value

• A numeric value representing the calculated force of interest.

Warning

This function is provided as is, without any guarantee regarding the accuracy of calculations. The author disclaims any liability arising by any eventual losses arising from direct or indirect use of this package.

Details

This function has been written for convenience and future usage (e.g. implementing continuous annuities).

References

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

See Also

intensity2Interest

Examples

#an interest rate equal to 0.02 corresponds to a force of interest of of 
interest2Intensity(i=0.02)