future_value_schedule

Evaluates the future value of an initial principal taking into consideration a schedule of compound interest rates.

Synopsis

#include <imsl.h>

float imsl_f_future_value_schedule (float principal, int count, float schedule[])

The type double function is imsl_d_future_value_schedule.

Required Arguments

float principal (Input)
Principal or present value.

int count (Input)
Number of interest rates in schedule.

float schedule[] (Input)
Array of size count of interest rates to apply.

Return Value

The future value of an initial principal after applying a schedule of compound interest rates. If no result can be computed, NaN is returned.

Description

Function imsl_f_future_value_schedule computes the future value of an initial principal after applying a schedule of compound interest rates.

It is computed using the following:

 

where schedulei =interest rate at the i-th period.

Example

In this example, imsl_f_future_value_schedule computes the value of a $10,000 investment after 5 years with interest rates of 5%, 5.1%, 5.2%, 5.3% and 5.4%, respectively.

 

#include <stdio.h>

#include <imsl.h>

 

int main()

{

float principal = 10000.0;

float schedule[5] = { .050, .051, .052, .053, .054 };

float fvschedule;

 

fvschedule = imsl_f_future_value_schedule (principal, 5, schedule);

printf ("After 5 years the $10,000 investment will have grown ");

printf ("to $%.2f.\n", fvschedule);

}

Output

 

After 5 years the $10,000 investment will have grown to $12884.77.