This function computes the present value of an annuity payment over a given time period and interest rate.
Arguments
- rate
Numeric. The interest rate per period as a decimal (e.g., 0.05 for 5%). If the rate is 0, the present value is equal to the total number of periods.
- t
Numeric. The total number of periods for the annuity payments.
Value
Numeric. The present value of the annuity payments.
Examples
# Present value of an annuity with 5% interest over 10 periods
get_pv_pmt(rate = 0.05, t = 10)
#> [1] 7.721735
# Present value of an annuity with 0% interest over 10 periods
get_pv_pmt(rate = 0, t = 10)
#> [1] 10