blockTimeValueOfMoney
Calculate the time value of money (TVM) using continuous compounding
Extends from Interfaces.PartialConverters.InformationProcessing_SO (Information Processing Block).
Information
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The Real output y indicates the nominal value of the input u at the end (Future Value) or the beginning (Present Value) of a horizon of length u_T using the interest rate u_r according to the formula:
The given rate is assumed to be a continuously compounding rate (aka force of interest). Using the switch isCCR automatic conversion of a discrete rate can be activated.
Notes
- There is no accumulation, so the input is simply transformed at any moment given rate and time horizon values.
See also
Parameters
| Type | Name | Default | Description |
|---|---|---|---|
| Rate | rate | Constant compounding rate | |
| Time | T | Constant time horizon (T >0 → FV, T < 0 → PV) | |
| Structural Parameters | |||
| Boolean | hasConstantRate | false | = true, if the discount rate is given by the constant parameter |
| Boolean | hasConstantHorizon | false | = true, if the time horizon is given by a constant parameter |
| Boolean | isCCR | true | = true, the rate does not need conversion to a continuously compounding rate |
Connectors
| Type | Name | Default | Description |
|---|---|---|---|
| Interfaces.Connectors.RealInput | u | Current value input | |
| Interfaces.Connectors.RealInput | u_T | Time horizon(T >0 → FV, T < 0 → PV) | |
| Interfaces.Connectors.RealInput | u_r | Interest rate |
Components
| Type | Name | Default | Description |
|---|---|---|---|
| RealOutput | y (from InformationProcessing_SO) | Information output signal |