Discount factor for compound interest

Computes the discount factor \(v^t = (1+i)^{-t}\).

Usage

discount(i, t)

Arguments

i

Effective interest rate. May be scalar or vector.

t

Time. May be scalar or vector.

Value

Numeric vector of discount factors.

Examples

discount(0.05, 0:5)
#> [1] 1.0000000 0.9523810 0.9070295 0.8638376 0.8227025 0.7835262
discount(c(0.03, 0.05), 1)
#> [1] 0.9708738 0.9523810