financials

R package for financial functions for the Renjin implementation of R for the JVM.

To use it add the following dependency to your pom

<dependency>
    <groupId>se.alipsa</groupId>
    <artifactId>financials</artifactId>
    <version>1.0.0</version>
</dependency>

Functions

Payment

pmt <- function(interestRate, nper, pv, fv = 0, type = 0)

Equivalent to Excel/Calc's PMT(interest_rate, number_payments, PV, FV, Type) function, which calculates the payments for a loan or the future value of an investment

Parameters

• interestRate periodic interest rate represented as a decimal.
• nper number of total payments / periods.
• pv present value -- borrowed or invested principal.
• fv future value of loan or annuity, default to 0 (which is what you want for loans)
• type when payment is made: beginning of period is 1; end is 0. Default is 0

Value

returns A double representing the periodic payment amount.

Example

Calulate payment for a loan

The following data:

Item	amount
Loan Amount	50000
Interest rate	3.50%
Periods	60
Monthly payment	909.59

Then the Monthly payment can be calculated as pmt(3.5/100/12, 60, -50000)

Monthly Annuity Amount

monthlyAnnuityAmount <- function(loanAmount, interestRate, tenureMonths, amortizationFreemonths = 0, type = 0)

Calculate the monthly annuity amount i.e. the amortization and interest amount each payment period (month)

Parameters

• loanAmount the total loan amount including capitalized fees (e.g. startup fee)
• interestRate the annual nominal interest
• tenureMonths the tenure of the loan in number of months
• amortizationFreeMonths the number of initial amortization free months, default to 0
• type - when payment is made: beginning of period is 1; end is 0. Default is 0

Value

returns the monthly annuity amount

Example

Assuming the following:

Item	amount
Loan Amount	50000
Interest rate	3.50%
Tenure	60
Amortization Free months	6

The monthly annuity amount would be monthlyAnnuityAmount(50000, 3.5/100, 60, 6) = 1002.10

Cash Flow

cashFlow <- function(loanAmount, interestRate, tenureMonths, amortizationFreeMonths, invoiceFee)

Parameters

• loanAmount the total loan amount including capitalized fees (e.g. startup fee)
• interestRate the annual nominal interest
• tenureMonths the tenure of the loan in number of months
• amortizationFreeMonths the number of initial amortization free months, default to 0
• invoiceFee a fee for each statement invoiced, default to 0

Value

returns a vector of cachFlow entries for each period

Example

cf <- cashFlow(
  loanAmount=50000,
  interestRate=0.035,
  tenureMonths=60,
  amortizationFreeMonths=6,
  invoiceFee=30
)

Payment Plan

paymentPlan <- function(loanAmount, interestRate, tenureMonths, amortizationFreeMonths = 0, invoiceFee = 0)

Parameters

• loanAmount the total loan amount including capitalized fees (e.g. startup fee)
• interestRate the annual nominal interest
• tenureMonths the total tenure of the loan in number of months
• amortizationFreeMonths the number of initial amortization free months, default to 0
• invoiceFee a fee for each statement invoiced, default to 0

Value

returns a dataframe with the initial payment plan based on the input, based on monthly payment periods

Example

loanAmt <- 10000
tenureMonths <- 1.5 * 12
amortizationFreeMonths <- 6
interest <- 3.5 / 100
invoiceFee <- 30

ppdf <- paymentPlan(loanAmt, interest, tenureMonths, amortizationFreeMonths, invoiceFee)

which will yield a data.frame (ppdf) as follows:

month	costOfCredit	interestAmt	amortization	invoiceFee	outgoingBalance	cashFlow
0	0	0	0	0	10000	-10000
1	29.167	29.167	0	30	10000	59.167
2	29.167	29.167	0	30	10000	59.167
3	29.167	29.167	0	30	10000	59.167
4	29.167	29.167	0	30	10000	59.167
5	29.167	29.167	0	30	10000	59.167
6	849.216	29.167	820.05	30	9179.95	879.216
7	849.216	26.775	822.441	30	8357.509	879.216
8	849.216	24.376	824.84	30	7532.669	879.216
9	849.216	21.97	827.246	30	6705.423	879.216
10	849.216	19.557	829.659	30	5875.764	879.216
11	849.216	17.138	832.079	30	5043.685	879.216
12	849.216	14.711	834.506	30	4209.18	879.216
13	849.216	12.277	836.94	30	3372.24	879.216
14	849.216	9.836	839.381	30	2532.86	879.216
15	849.216	7.388	841.829	30	1691.031	879.216
16	849.216	4.932	844.284	30	846.747	879.216
17	849.216	2.47	846.747	30	0	879.216
18	849.216	0	849.216	30	-849.216	879.216

Total Payment amount

totalPaymentAmount <- function(loanAmount, interestRate, tenureMonths, amortizationFreeMonths = 0, invoiceFee = 0)

Total Payment amount is the sum of all payments.

Parameters

• loanAmount the total loan amount including capitalized fees (e.g. startup fee)
• interestRate the annual nominal interest
• tenureMonths the total tenure of the loan in number of months
• amortizationFreeMonths the number of initial amortization free months, default to 0
• invoiceFee a fee for each statement invoiced, default to 0

Value

returns a double containing the sum of all payments

Example

loanAmt <- 10000
tenureMonths <- 1.5 * 12
amortizationFreeMonths <- 6
interest <- 3.5 / 100
invoiceFee <- 30

totalAmt <- totalPaymentAmount(loanAmt, interest, tenureMonths, amortizationFreeMonths, invoiceFee)
print(totalAmt)

[1] 11725.645213062116

Internal Rate of Return

irr <- function(cf, precision = 1e-6)

Parameters

• cf a vector of the cash flow (see the cashFlow or paymentPlan functions)
• precision The desired accuracy to calculate the irr with (optional, default 1e-6) precision is used in the uniroot function and is assigned to the tol parameter of uniroot.

Value

returns a double containing the internal return rate

Example

Given the cache flow above

internalReturn <- irr(ppdf$cashFlow)
print(internalReturn)

[1] 0.00291665871251

Annual Percentage Rate (a.k.a. effective interest)

apr <- function(monthlyIrr)

Parameters

• monthlyIrr the MONTHLY internal rate of return (monthly irr)

Value

Returns a double with the annual percentage rate

Example

annualPercentage <- apr(internalReturn)
print(annualPercentage)

[1] 0.03556685438873

Net present value

npv <- function(i, cf, t=seq(along=cf))

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. This function produces the same results as Excel does which differs from packages such as FinCal.

Parameters

• i interest rate
• cf cache flow e.g. the cashFlow vector of the payment plan
• t time series (optional)

Value

Returns a double with the net present value

Examples

print(npv(cf = c(-123400, 36200, 54800, 48100), i = 0.035))

[1] 5908.865636076123