lifecontingencies (version 1.3.1)

interest2Discount: Functions to switch from interest to discount rates

Description

These functions switch from interest to discount rates and vice - versa

Usage

interest2Discount(i)
discount2Interest(d)

Arguments

i

Interest rate

d

Discount rate

Value

A numeric value

Details

The following formula (and its inverse) rules the relationships: $$\frac{i}{{1 + i}} = d$$

References

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

See Also

intensity2Interest,nominal2Real

Examples

# NOT RUN {
discount2Interest(d=0.04)
# }