pvContinuousCompSingleCF {tvmComp}

Calculates Present Value of a Single Cash Flow that is Compounded Continuously.

Description

Calculates Present Value of a Single Cash Flow that is Compounded Continuously.

Usage

pvContinuousCompSingleCF(r, n, fv)

Arguments

r

A number.

n

A number.

fv

A number.

Details

According to Titman,S. et al. (2017), a continuously compounding scenario is that where the time intervals between interest payments are infinitely small. The Method pvContinuousCompSingleCF() was developed for this scenario and calculates Present Value of a Single Cash Flow that is Compounded Continuously. The method gives Present Value when values are passed to its three arguments. Here r is annual rate, n is number of years and fv is Future Value

Value

Input values to three arguments r , n and fv.

Author(s)

MaheshP Kumar, [e-mail]

References

Hummelbrunner,S.A., Halliday,K., Hassanlou,A.R. (2020). Contemporary Business Mathematics with Canadian Applications (12th Edition). Pearson Education Canada. ISBN 9780135285015, https://bookshelf.vitalsource.com/books/9780135406380.

Examples

pvContinuousCompSingleCF(0.1854,1,3250)
pvContinuousCompSingleCF(0.1854,1,-3250)