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.