| fvMonthlyCompSingleCF {tvmComp} | R Documentation |
Computing Future Value of a Single Cash Flow under Monthly Compounding Frequency.
Description
Computing Future Value of a Single Cash Flow under Monthly Compounding Frequency.
Usage
fvMonthlyCompSingleCF(r, n, pv)
Arguments
r |
A number. |
n |
A number. |
pv |
A number. |
Details
According to Brooks,R. (2018), when you deposit money in a certificate of deposit (CD) at a bank, the bank is technically borrowing or renting money from you with a promise to repay that money with interest. Let us assume that you purchase a CD for $500 with a promised annual percentage rate of 5 percent. The annual percentage rate (APR) is the yearly rate that you earn by investing or in other words, this is a charge for borrowing. Although the financial institution quotes the 5 percent interest rate on an annual basis, these institutions in fact often pay interest quarterly, monthly, or even daily. The period in which the financial institution applies interest is the Compounding Period, and the number of times it adds interest to an account each year is the Compounding Periods per Year.
The method fvMonthlyCompSingleCF() computes Future Value (fv) of a Single Cash Flow under Monthly Compounding Frequency and gives fv when values are passed to its three arguments. Here r is annual rate, n is number of years and pv is Present Value.
Value
Input values to three arguments r , n and pv.
Author(s)
MaheshP Kumar, maheshparamjitkumar@gmail.com
References
Brooks,R. (2018). Financial Management (4th Edition). Pearson Education (US). ISBN 9780134730417, https://bookshelf.vitalsource.com/books/9780134731070.
Examples
fvMonthlyCompSingleCF(0.08,10,2000)
fvMonthlyCompSingleCF(0.08,10,-2000)