futureValueSchedule¶

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

Synopsis¶

futureValueSchedule (principal, count, 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 futureValueSchedule computes the future value of an initial principal after applying a schedule of compound interest rates.

It is computed using the following:

\[\sum_{i=1}^{\mathit{count}} \left(\mathit{principal} * \mathit{schedule}_i\right)\]

where $schedule_i$ =interest rate at the i-th period.

Example¶

In this example, futureValueSchedule 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.

from __future__ import print_function
from numpy import *
from pyimsl.math.futureValueSchedule import futureValueSchedule

principal = 10000.00
schedule = [.05, .051, .052, .053, .054]

fvschedule = futureValueSchedule(principal, schedule)
print("After 5 years the $10,000 investment will have grown", end=' ')
print("to $%.2f." % (fvschedule))

Output¶

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