Accumulation function: Difference between revisions

Revision as of 01:40, 8 October 2011

Revision as of 01:45, 8 October 2011

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*[[compound interest]]: <math>a(t)=(1+i)^t</math>

*[[simple discount]]: <math>a(t) = (1-d*t)</math>

*[[compound discount]]: <math>a(t) = (1-d)^(-t)</math>

In the case of a positive [[rate of return]], as in the case of interest, the accumulation function is an [[increasing function]].