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Calculate Present Value of Future Salaries (PVFS)

get_pvfs.Rd

This function computes the present value of future salaries (PVFS) for a given set of probabilities, interest rates, and salary values over a time period.

Usage

get_pvfs(remaining_prob_vec, interest_vec, sal_vec)

Arguments

remaining_prob_vec

Numeric vector. The remaining survival probabilities for each period.

interest_vec

Numeric vector. The interest rates for each period.

sal_vec

Numeric vector. The projected salaries for each period.

Value

Numeric vector. A vector of PVFS values, where each element represents the present value of future salaries starting from that period.

Details

The present value of future salaries is calculated by:

  • Adjusting projected salaries by the survival probability at each period.

  • Discounting future salaries to their present value using the interest rates provided.

Examples

# Example inputs
remaining_prob_vec <- c(1, 0.95, 0.90, 0.85)
interest_vec <- c(0.03, 0.03, 0.03, 0.03)
sal_vec <- c(50000, 52000, 54000, 56000)

# Calculate PVFS
get_pvfs(remaining_prob_vec, interest_vec, sal_vec)
#> [1] 181875.80 144560.07 102280.03  54368.93