CFLib.org – DiscountingInterest

DiscountingInterest(p, r, t)

Last updated April 23, 2002

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author

Stephan Scheele
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Version: 1 | Requires: ColdFusion 5 | Library: FinancialLib

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Description:
Calculate the actual value of an amount by discounting the interest over n years.

Return Values:
Returns a numeric value.

Example:

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<cfoutput>
$133.10 discounted at 10% over 1 year: #discountingInterest(0.1, 133.1, 1)#<br>
$133.10 discounted at 10% over 2 years: #discountingInterest(0.1, 133.1, 2)#<br>
$133.10 discounted at 10% over 3 years: #discountingInterest(0.1, 133.1, 3)#
</cfoutput>

<cfoutput>
$133.10 discounted at 10% over 1 year: #discountingInterest(0.1, 133.1, 1)#<br>
$133.10 discounted at 10% over 2 years: #discountingInterest(0.1, 133.1, 2)#<br>
$133.10 discounted at 10% over 3 years: #discountingInterest(0.1, 133.1, 3)#
</cfoutput>

Parameters:

Name	Description	Required
p	Principal	Yes
r	Interest rate (0.03 = 3%)	Yes
t	Time in years.	Yes

Full UDF Source:

	
	
			
			
			
				
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				ColdFISH is developed by Jason Delmore.  Source code and license information available at coldfish.riaforge.org.  Version 3.1.1
				
			<cfscript>
/**
 * Calculate the actual value of an amount by discounting the interest over n years.
 * 
 * @param p 	 Principal 
 * @param r 	 Interest rate (0.03 = 3%) 
 * @param t 	 Time in years. 
 * @return Returns a numeric value. 
 * @author Stephan Scheele (&#115;&#116;&#101;&#112;&#104;&#97;&#110;&#64;&#115;&#116;&#101;&#112;&#104;&#97;&#110;&#45;&#116;&#45;&#115;&#99;&#104;&#101;&#101;&#108;&#101;&#46;&#100;&#101;) 
 * @version 1.0, April 23, 2002 
 */
function DiscountingInterest(r, p, t){
 return (p / (1 + r)^t);
}
</cfscript>
		<cfscript>
/**
 * Calculate the actual value of an amount by discounting the interest over n years.
 * 
 * @param p      Principal 
 * @param r      Interest rate (0.03 = 3%) 
 * @param t      Time in years. 
 * @return Returns a numeric value. 
 * @author Stephan Scheele (stephan@stephan-t-scheele.de) 
 * @version 1.0, April 23, 2002 
 */
function DiscountingInterest(r, p, t){
 return (p / (1 + r)^t);
}
</cfscript>