Financial Functions
Financial functions can be of great use in modeling financial optimization models. They perform common business calculations, such as determining
the depreciation of an asset,
the payments for a loan,
the future value or net present value of an investment, and
the values of bonds, coupons or other securities.
Having these functions available in AIMMS prevents you from having to implement such functionality into your models yourself. Common arguments for the financial functions include:
- Values
the value of an investment, security or cash flow at a specific time. For example, the amount paid periodically to an investment or loan.
- Rates
the interest rate or discount rate for an investment or security. For example, the desired internal return on investment could be 8 percent.
- Dates
the date of measurements, payments or other events. For example, the date of settlement of a security. AIMMS’s financial functions always expect dates to be provided in the format
"ccyy-mm-dd".- Interval lengths (in time periods)
the number of periods that has to be analyzed. For example, the useful life of an asset or the number of payments or periods of an investment
- Type
the time when payments are made during the period. For example, at the beginning of a month or the end of the month.
The financial functions supported by AIMMS can be divided into separate categories. Each of these categories will be shortly introduced (including the mathematical equations underlying the functions in a category) and each of the available functions will be described in full detail. The following categories can be distinguished: