SimpIntPaid {iemisc} | R Documentation |
Simple Interest Paid (Engineering Economics)
Description
Computes the total amount paid at the end of n periods using simple interest
Usage
SimpIntPaid(P, n, i)
Arguments
P |
numeric vector that contains the present value(s) |
n |
numeric vector that contains the period value(s) |
i |
numeric vector that contains the interest rate(s) as whole number or decimal |
Details
Simple Interest is expressed as
I = Pni
S_n = P + I
or
S_n = P\left(1 + ni\right)
- P
the "principal amount (lent or borrowed)"
S_n
the "total amount paid back"
- I
the "simple interest"
- i
the "interest rate per interest period"
- n
the "number of interest periods"
Value
SimpIntPaid numeric vector that contains the total amount paid at the end of n periods rounded to 2 decimal places
Author(s)
Irucka Embry
References
Chinyere Onwubiko, An Introduction to Engineering, Mission, Kansas: Schroff Development Corporation, 1997, page 205-206.
William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling, Engineering Economy, Fourteenth Edition, Upper Saddle River, New Jersey: Pearson/Prentice Hall, 2009, page 116.
Examples
library(iemisc)
# Example for equation 4-1 from the Sullivan Reference text (page 116)
SimpIntPaid(1000, 3, 10) # the interest rate is 10%