EIR {FinCal}

Equivalent/proportional Interest Rates

Description

An interest rate to be applied n times p.a. can be converted to an equivalent rate to be applied p times p.a.

Usage

EIR(r, n = 1, p = 12, type = c("e", "p"))

Arguments

r

interest rate to be applied n times per year (r is annual rate!)

n

times that the interest rate r were compounded per year

p

times that the equivalent rate were compounded per year

type

equivalent interest rates ('e',default) or proportional interest rates ('p')

Examples

# monthly interest rat equivalent to 5% compounded per year
EIR(r=0.05,n=1,p=12)

# monthly interest rat equivalent to 5% compounded per half year
EIR(r=0.05,n=2,p=12)

# monthly interest rat equivalent to 5% compounded per quarter
EIR(r=0.05,n=4,p=12)

# annual interest rate equivalent to 5% compounded per month
EIR(r=0.05,n=12,p=1)
# this is equivalent to
ear(r=0.05,m=12)

# quarter interest rate equivalent to 5% compounded per year
EIR(r=0.05,n=1,p=4)

# quarter interest rate equivalent to 5% compounded per month
EIR(r=0.05,n=12,p=4)

# monthly proportional interest rate which is equivalent to a simple annual interest
EIR(r=0.05,p=12,type='p')