- Function InvestmentSingleFutureValue(PresentValue, PeriodicRate)
InvestmentSingleFutureValue
The function InvestmentSingleFutureValue
returns the future value,
the cash balance, of a payment made at this moment, present value, with
periodic interest rates.
InvestmentSingleFutureValue(
PresentValue, ! (input) numerical expression
PeriodicRate ! (input) one-dimensional numerical expression
)
Arguments
- PresentValue
Payment made at the start of the first period. PresentValue must be a real number. If PresentValue is a negative number it represents an outgoing amount and when it is a positive number it represents an incoming amount.
- PeriodicRate
Interest rates which differ per period. PeriodicRate is a one-dimensional parameter, which should contain at least one nonzero number. The periods must be equally spaced in time and the interest rates must be ordered.
Return Value
The function
InvestmentSingleFutureValue
returns the future value of the present value, using the periodic interest rates.
Equation
The future value \(v_f\) is computed through the equation
\[v_f = v_p\prod_{i=1}^n(1+r_i)\]where \(v_p\) is the present value, and \(r_i\) the variable, periodic interest rates.
Note
This function can be used in an objective function or constraint and the input parameters PresentValue and PeriodicRate can be used as a variable.
The function
InvestmentSingleFutureValue
is similar to the Excel functionFVSCHEDULE
.
Example
Given the local declarations:
Set _s_years {
SubsetOf: Integers;
Index: _i_year;
}
Parameter _p_value {
IndexDomain: _i_year;
}
Parameter _p_npv;
Net present value can be computed as follows:
_s_years := ElementRange(2005,2008);
_p_value(_i_year) := ord(_i_year) * 100 + 50 ;
_p_npv := InvestmentVariablePresentValue( _p_value, 0.07 );
block where single_column_display := 1, listing_number_precision := 6 ;
display _p_npv ;
endblock ;
With the following result in the listing file:
_p_npv := 987.553700 ;
References
Day count basis methods.