Mathematica in Finance
- To: mathgroup at smc.vnet.net
- Subject: [mg44832] Mathematica in Finance
- From: "Comcast" <dajon at comcast.net>
- Date: Wed, 3 Dec 2003 04:24:14 -0500 (EST)
- Sender: owner-wri-mathgroup at wolfram.com
I'm taking a finance class and I'm trying to write my own Time Value Money
equations and I'm having particular trouble with one.
In specific, to begin with I do not have a text reference for the equation
therefore I'm doubting the work I've already done.
EquivalentAnnuity[cashFlows_, discountRate_] :=
Sum[cashFlows[[t]]/(1 + discountRate)^(t - 1), {t, 1, Length[cashFlows]}]/
Sum[(1/(1 + discountRate))^t, {t, 2, Length[cashFlows]}]
Example: P={-10000,4500,4500,4500}
Is anyone familiar with this type of analysis?
Is Equivalent Annuity something that is in the Finance Package?
Daj at northwestern.edu