Class FinancialMath

java.lang.Object

org.episteme.social.economics.FinancialMath

public class FinancialMath
extends Object

Utility class for financial mathematics.

Includes Net Present Value (NPV), Future Value (FV), and Amortization

Since:

1.0

Author:

Silvere Martin-Michiellot, Gemini AI (Google DeepMind)

Method Summary

Modifier and Type	Method	Description
static Money	calculateFutureValue(Money presentValue, Real rate, int periods)	Calculates the Future Value (FV) of an investment.
static Money	calculateMonthlyPayment(Money principal, Real annualRate, int years)	Calculates monthly mortgage payment (Amortization).
static Money	calculateNPV(Real rate, Money... cashFlows)	Calculates the Net Present Value (NPV) of a series of cash flows.

Methods inherited from class Object

clone, equals, finalize, getClass, hashCode, notify, notifyAll, toString, wait, wait, wait

Method Details

calculateFutureValue

public static Money calculateFutureValue(Money presentValue,
 Real rate,
 int periods)

Calculates the Future Value (FV) of an investment. FV = PV * (1 + r)^n

Parameters:

presentValue - The current value (PV).

rate - The interest rate per period (r) as a decimal (e.g. 0.05 for 5%).

periods - The number of periods (n).

Returns:

The future value.

calculateNPV

public static Money calculateNPV(Real rate,
 Money... cashFlows)

Calculates the Net Present Value (NPV) of a series of cash flows. NPV = Sum(CF_t / (1 + r)^t)

Parameters:

rate - The discount rate (r).

cashFlows - The series of cash flows (Money objects).

Returns:

The Net Present Value.

calculateMonthlyPayment

public static Money calculateMonthlyPayment(Money principal,
 Real annualRate,
 int years)

Calculates monthly mortgage payment (Amortization). M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

Parameters:

principal - The loan amount (P).

annualRate - The annual interest rate.

years - The loan term in years.

Returns:

The monthly payment.