NAME exp2, exp10, log2, compound, annuity - exponential, loga- rithm, financial SYNOPSIS cc [ flag ... ] file ... -lsunmath -lm [ library ... ] #include <sunmath.h> double exp2(double x); double exp10(double x); double log2(double x); double compound(double r, double n); double annuity(double r, double n); DESCRIPTION exp2() and exp10() return 2**x and 10**x respectively. log2() returns the logarithm to base 2. compound() and annuity() are functions important in finan- cial computations of the effect of interest at periodic rate r over n periods. compound(r,n) computes (1+r)**n, the com- pound interest factor. Given an initial principal P0, its value after n periods is just Pn = P0 *compound(r,n). annuity(r,n) computes (1 - (1+r)**-n)/r, the present value of annuity factor. Given an initial principal P0, the equivalent periodic payment is just p = P0 / annuity(r,n). compound() and annuity() are computed using log1p() and expm1() to avoid gratuitous inaccuracy for small-magnitude r. compound() and annuity() are not defined for r <= -1. Thus a principal amount P0 placed at 5% annual interest com- pounded quarterly for 30 years would yield P30 = P0 * compound(.05/4, 30.0 * 4) while a conventional fixed-rate 30-year home loan of amount P0 at 10% annual interest would be amortized by monthly pay- ments in the amount p = P0 / annuity(.10/12, 30.0 * 12). SEE ALSO exp(3M)
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