AccumulationFunction

Determing the time value of money for an investment of 1

Diagram

Information

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The Real output y is the value of the accumulation function at any time t in the simulation given the variable rate of interest according to input u. By definition the accumulation function will give the factor to determing the future value A(t) for an investment with a present value A(0) of 1 monetary units:

A(t) = A(0) · a(t) = 1 · a(t)

Parameters (1)

isCCR

Value: true

Type: Boolean

Description: = true, if the factional rate given is assumed to be a continuously compounding rate else the rate will be converted (growing.isCCR)

Connectors (2)

y

Type: RealOutput

Description: Output signal

u

Type: RealInput

Description: Input

Components (2)

growing

Type: ExponentialGrowth

Description: Exponential growth of connected stock

accumulationFunction

Type: InformationLevel

Description: Growth factor according to the accumulation function

Used in Components (1)

PresentValue

BusinessSimulation.MoleculesOfStructure.InformationProcessing

Calculates the present value of a stream of cash flows