Revision as of 07:20, 14 August 2008 edit Patrick (talk \| contribs) Edit filter managers, Administrators 68,638 edits expressing the future value at time ''t'' ← Previous edit		Revision as of 07:28, 14 August 2008 edit undo Patrick (talk \| contribs) Edit filter managers, Administrators 68,638 edits ratio Next edit →
Line 1: The '''accumulation function''' ''a''(''t'') is a function defined in terms of time ''t'' expressing the ~~[[future~~ratio of the value]] at time ''t'' ([[future value]]) and the initial investment ([[present value]]) (see also [[time value of money]]). It is used in [[interest theory]]. Thus the value at time ''t'' where the initial investment is ''k'' is given by: ~~The accumulation function assumes the initial investment to be 1. To obtain value of money where the initial investment is ''k'', simply have~~ :<math>A(t) = k \cdot a(t)</math>.

Accumulation function: Difference between revisions