com.croftsoft.core.math
Class FinanceLib

java.lang.Object
  com.croftsoft.core.math.FinanceLib

public final class FinanceLib
extends Object

Financial calculations.

Since:

1999-08-15

Version:

2001-10-10

Author:

David Wallace Croft

Method Summary

static double	annualSavingsNeeded(double f, double r, double t) Calculates the annual savings necessary to accumulate a specified value in the future.
static double	futureValue(double c, double r, double t) The future value of a cash flow received today.
static double	futureValueAnnuity(double c, double r, double t) Calculates the future value of an annuity.
static double	internalRateOfReturn(double irrEstimate, double[] cashFlows) The calculated discount rate where the net present value is 0.
static double	netPresentValue(double discountRate, double[] cashFlows) The discounted value of multiple cash flows received in the future.
static double	presentValue(double[] c, double r) The discounted value of varying annual cash flows.
static double	presentValue(double c, double r, double t) The discounted value of a single cash flow received in the future.
static double	presentValueAnnuity(double c, double r, double t) Calculates the present value of an annuity.
static void	testAnnuity(double C, double r, double T) Test method.
static void	testRetire(double desiredSavingsInterestIncome, double savingsInterestRate, double inflationRate, double taxRate, double investmentInterestRate, double yearsOfSaving)

Methods inherited from class java.lang.Object

clone, equals, finalize, getClass, hashCode, notify, notifyAll, toString, wait, wait, wait

Method Detail

testRetire

public static final void testRetire(double desiredSavingsInterestIncome,
                                    double savingsInterestRate,
                                    double inflationRate,
                                    double taxRate,
                                    double investmentInterestRate,
                                    double yearsOfSaving)

testAnnuity

public static final void testAnnuity(double C,
                                     double r,
                                     double T)

Test method. Prints the future value of an annuity followed by the present value calculated three different ways.

Parameters:

c - Annual cash income starting one year from today.

r - Annual interest earned on income.

t - Number of years of cash income.

futureValue

public static final double futureValue(double c,
                                       double r,
                                       double t)

The future value of a cash flow received today.

Parameters:

c - Cash flow today.

r - Inflation rate.

t - Number of years from today when the value is evaluated.

futureValueAnnuity

public static final double futureValueAnnuity(double c,
                                              double r,
                                              double t)

Calculates the future value of an annuity.

Parameters:

c - Annual cash income starting one year from today.

r - Annual interest earned on income.

t - Number of years of cash income.

internalRateOfReturn

public static final double internalRateOfReturn(double irrEstimate,
                                                double[] cashFlows)

The calculated discount rate where the net present value is 0.

Parameters:

irrEstimate - The initial estimated value for the IRR (e.g., 0.10 for 10%).

cashFlows - Array of cash flows received in the future, indexed from time = 0.

netPresentValue

public static final double netPresentValue(double discountRate,
                                           double[] cashFlows)

The discounted value of multiple cash flows received in the future.

Parameters:

discountRate - The discount rate or cost of capital (e.g., 0.10 for 10%).

cashFlows - Array of cash flows received in the future, indexed from time = 0.

presentValue

public static final double presentValue(double c,
                                        double r,
                                        double t)

The discounted value of a single cash flow received in the future.

Parameters:

c - Cash flow received in the future

r - Inflation or annual interest.

t - Number of years from today when the cash flow is received.

presentValue

public static final double presentValue(double[] c,
                                        double r)

The discounted value of varying annual cash flows.

Parameters:

c - Array of annual cash income starting one year from today.

r - Annual interest earned on income.

presentValueAnnuity

public static final double presentValueAnnuity(double c,
                                               double r,
                                               double t)

Calculates the present value of an annuity.

Parameters:

c - Annual cash income starting one year from today.

r - Inflation or annual interest.

t - Number of years of cash income.

annualSavingsNeeded

public static final double annualSavingsNeeded(double f,
                                               double r,
                                               double t)

Calculates the annual savings necessary to accumulate a specified value in the future.

Parameters:

f - Future value desired.

r - Annual interest.

t - Number of years of savings.