effective_i {EngrEcon}

Calculate effective annual interest rate for a known nominal rate and compounding period per year effective_i Compute future value nominal rate and compounding period per year, and frequency.

Description

Calculate effective annual interest rate for a known nominal rate and compounding period per year

effective_i Compute future value nominal rate and compounding period per year, and frequency.

Usage

effective_i(r, m = c("yearly", "quarterly", "monthly"))

Arguments

r

nominal interest rate in decimal number

m

number of compounding period per year monthly = 12 Quarterly = 4 yearly = 1

Value

effective_i

References

Newnan, D. G., Eschenbach, T. G., Lavelle, J. P., & Oxford, N. Y. (2020). Engineering Economic Analysis (14th ed.). New York, Oxford University Press.

David, W., & Terry, R. (2012). Fundamentals of Engineering Economics and Decision Analysis. Springer Nature.

Examples

 
# Result: effective_i = 
effective_i (0.08, m = "yearly")