/* * Copyright (c) 2012, 2018, Werner Keil, Anatole Tresch and others. * * Licensed under the Apache License, Version 2.0 (the "License"); you may not * use this file except in compliance with the License. You may obtain a copy of * the License at * * http://www.apache.org/licenses/LICENSE-2.0 * * Unless required by applicable law or agreed to in writing, software * distributed under the License is distributed on an "AS IS" BASIS, WITHOUT * WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the * License for the specific language governing permissions and limitations under * the License. * * Contributors: @atsticks, @keilw */ package org.javamoney.calc.common; import org.javamoney.calc.CalculationContext; import java.math.BigDecimal; import javax.money.MonetaryAmount; /** * Future Value (FV) is a formula used in finance to calculate the value of a cash flow at a later * date than originally received. This idea that an amount today is worth a different amount than at * a future time is based on the time value of money. The time value of money is the concept that an * amount received earlier is worth more than if the same amount is received at a later time. For * example, if one was offered $100 today or $100 five years from now, the idea is that it is better * to receive this amount today. The opportunity cost for not having this amount in an investment or * savings is quantified using the future value formula. If one wanted to determine what amount they * would like to receive one year from now in lieu of receiving $100 today, the individual would use * the future value formula. See example at the bottom of the page. The future value formula also * looks at the effect of compounding. Earning .5% per month is not the same as earning 6% per year, * assuming that the monthly earnings are reinvested. As the months continue along, the next month's * earnings will make additional monies on the earnings from the prior months. For example, if one * earns interest of $40 in month one, the next month will earn interest on the original balance * plus the $40 from the previous month. This is known as compound interest. * * {@code FV(<amount>) = <amount> * ((1 + <rate>).pow(<periods>)) } * * @author Anatole Tresch * @author Werner Keil * @see <a href="http://www.financeformulas.net/Future_Value.html">http://www.financeformulas.net/Future_Value.html</a> */ public final class FutureValue extends AbstractRateAndPeriodBasedOperator{ /** * Private constructor. * * @param rateAndPeriods the target rate and periods, not null. */ private FutureValue(RateAndPeriods rateAndPeriods) { super(rateAndPeriods); } /** * Access a MonetaryOperator for calculation. * * @param rateAndPeriods the target rate and periods, not null. * @return the operator, never null. */ public static FutureValue of(RateAndPeriods rateAndPeriods) { return new FutureValue(rateAndPeriods); } /** * Performs the calculation. * * @param amount the base amount, not null. * @param rateAndPeriods the target rate and periods, not null. * @return the resulting amount, never null. */ public static MonetaryAmount calculate(MonetaryAmount amount, RateAndPeriods rateAndPeriods) { BigDecimal f = (CalculationContext.one().add(rateAndPeriods.getRate().get())).pow(rateAndPeriods.getPeriods()); return amount.multiply(f); } @Override public MonetaryAmount apply(MonetaryAmount amount) { return calculate(amount, rateAndPeriods); } @Override public String toString() { return "FutureValue{" + "\n " + rateAndPeriods + '}'; } }