This function computes the present value of a series of growing annuity payments over a specified time period, given an interest rate and growth rate.
Usage
get_pv_gpmt(rate, growth, t)
Arguments
- rate
Numeric. The interest rate per period as a decimal (e.g., 0.05 for 5%).
- growth
Numeric. The growth rate of the payments per period as a decimal (e.g., 0.02 for 2%).
- t
Numeric. The total number of periods for the growing annuity payments.
Value
Numeric. The present value of the growing annuity payments.
Examples
# Present value of a growing annuity with 5% interest, 2% growth, over 10 periods
get_pv_gpmt(rate = 0.05, growth = 0.02, t = 10)
#> [1] 8.388106
# Present value of a growing annuity with 5% interest, 5% growth, over 10 periods
get_pv_gpmt(rate = 0.05, growth = 0.05, t = 10)