pvQuarterlyCompSingleCF {tvmComp} | R Documentation |
Computing Present Value of a Single Cash Flow for Quarterly Compounding.
Description
Computing Present Value of a Single Cash Flow for Quarterly Compounding.
Usage
pvQuarterlyCompSingleCF(r, n, fv)
Arguments
r |
A number. |
n |
A number. |
fv |
A number. |
Details
As explained by Hummelbrunner,S.A. et al. (2020), in simple interest calculations, the stated rate of interest, r, is usually expressed as an annual rate and that is also called the nominal rate of interest. In Compound Interest calculations, the periodic rate of interest is determined by dividing the nominal annual rate of interest by the compounding periods per year.The compounding periods commonly used in business and finance cover a number of months, or a number of days, quarters, or semi-annual periods or annual periods. Mortgages and car loans include weekly and bi-weekly payment options.
In this light, the method pvQuarterlyCompSingleCF()
was developed for Quarterly compounding scenario and it 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, maheshparamjitkumar@gmail.com
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
pvQuarterlyCompSingleCF(0.08,10,2000)
pvQuarterlyCompSingleCF(0.08,10,-2000)