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fv.annunity fails for zero discount rate #2

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jsjuni opened this issue Jul 30, 2023 · 1 comment · May be fixed by #3
Open

fv.annunity fails for zero discount rate #2

jsjuni opened this issue Jul 30, 2023 · 1 comment · May be fixed by #3

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@jsjuni
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jsjuni commented Jul 30, 2023

Although an edge case, the value of an annuity with a zero discount rate is mathematically well-defined. The formula in fv.annuity(), however, divides by r and returns NaN for a zero discount rate.

I've made a fix and will submit a pull request. The value for the zero discount rate case is the limit (using L'Hôpital's rule) as r goes to zero.
@jsjuni
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jsjuni commented Aug 4, 2023

I've made similar updates to pv.annuity(), n.period(), and pmt().

@jsjuni jsjuni linked a pull request Aug 4, 2023 that will close this issue
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handle zero discount rate jsjuni/FinCal
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@jsjuni