interest2Discount {lifecontingencies}

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

Details

The following formula (and its inverse) rules the relationships:

\frac{i}{{1 + i}} = d

Value

A numeric value

Author(s)

Giorgio Alfredo Spedicato

References

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

See Also

intensity2Interest,nominal2Real

Examples

discount2Interest(d=0.04)