financial_math 0.7.0 → 1.0.0

checksums.yaml

@@ -1,7 +1,7 @@
 ---
 SHA256:
-  metadata.gz: c75b430ae023c7b389a1cb1303567f002e83390d7f5d866a9271dafe9eb5a3e0
-  data.tar.gz: 062ffa4757770a5228e6f31be3f862d7ff1a7cb1e1647ce9c1dbd39df9d84d99
+  metadata.gz: e8a226f837f60b5914eef9fed600c8f386743d332349b11374820d197085866d
+  data.tar.gz: a52019ef71d5bb4bf42fa14124fda09caa84fe991a22c0217332257dd0590a56
 SHA512:
-  metadata.gz: 6610e4d4d5449e99f6f83b628f7985fa2c8acfa1ca8ec919654f73877eec72fe12033ca9fed3b03108d597e9dcc47f4ce411d05e617a1de47bd8c02a4525296e
-  data.tar.gz: f222e973425114c3dabc54bc88c4a4a810fabe0253cdf7a5df2773f60f1481b46c3355fd7e6f5b7160fdee555ea32188d7d1610ee59c0c82c50d192b40f1d66f
+  metadata.gz: d2b9a9c1c079011e09f1d67e3a2057ffc944d8d1fad3714aa7ac0d94a7f114221e87f9093211eb373f1b33b10ebaf7b517eed02fc9b57fce7178fa7f7a2b5986
+  data.tar.gz: d9482771823b46809357dd47ae3d31c9cff17d4c749280b0663686aa89ad0cbe10ccbecc899aa0fcc9265cfc7efb2413deb1656445ccee8458177f521b43236b

data/Gemfile.lock

@@ -1,7 +1,7 @@
 PATH
   remote: .
   specs:
-    financial_math (0.7.0)
+    financial_math (1.0.0)
 
 GEM
   remote: https://rubygems.org/
@@ -32,4 +32,4 @@ DEPENDENCIES
   rspec (~> 3.0)
 
 BUNDLED WITH
-   1.16.5
+   1.17.2

data/README.md

@@ -45,26 +45,39 @@ More content will be added, soon, like:
 To calculate the last item of a geometric progression:
 
 ```ruby
-args = { initial_value: 1100, ratio: 1.1, times: 5 }
-geometric_progression = FinancialMath::GeometricProgression.new(args)
-geometric_progression.last_item
+progression = FinancialMath::GeometricProgression.new(initial_value: 1100, ratio: 1.1, times: 5)
+progression.last_item
 ```
 
 To calculate the future value:
 
 ```ruby
-args = { present_value: 100_000.0, interest_rate: 0.05, periods: 3 }
-simple_interest = FinancialMath::SimpleInterest.new(args)
-simple_interest.future_value
+class Accountant
+  include FinancialMath::SimpleInterest
+end
+
+accountant = Accountant.new
+accountant.future_value(present_value: 100_000.0, interest_rate: 0.05, periods: 3)
 ```
 The interest rate must be in terms of years, if your problem is expressed in terms of days or months, provide the frequency of conversion and the periods in terms of days.
 
 ```ruby
-args = { present_value: 1500.0, interest_rate: 0.45, periods: 73, frequency: 360 }
-simple_interest = FinancialMath::SimpleInterest.new(args)
-simple_interest.future_value
+class Accountant
+  include FinancialMath::SimpleInterest
+end
+
+accountant = Accountant.new
+accountant.future_value(present_value: 1500.0, interest_rate: 0.45, periods: 3, frequency: 360)
 ```
 
+## Available simple interest formulas
+
+![](simple_interest.png)
+
+## Available compound interest formulas
+
+![](compound_interest.png)
+
 ## Development
 
 If want test this gem without clone this repo, type:
@@ -78,6 +91,9 @@ This command will get the development dependencies installed too.
 ## Release History
 
 
+* 1.0.0
+    * CHANGE: Remove `SimpleInterest()`
+    * CHANGE: Remove `CompoundInterest()`
 * 0.7.0
     * ADD: Add `present_value`, `continous_present_value` to `CompoundInterest` as public methods
     * ADD: Add `internal_rate_of_return`, `real_rate_of_return` and `a_good_investment?` to `CompoundInterest` as public methods
@@ -95,7 +111,7 @@ This command will get the development dependencies installed too.
 * 0.3.0
     * ADD: Add `SimpleInterest` class
 * 0.3.0
-    * ADD: Add `GEometricProgression` class  
+    * ADD: Add `GEometricProgression` class
 * 0.2.0
     * ADD: Add `ArithemeticProgression` class
 * 0.1.0

data/lib/financial_math/compound_interest.rb

@@ -1,73 +1,62 @@
 module FinancialMath
-  class CompoundInterest
-    def initialize(args)
-      @present_value = args.fetch(:present_value, 0.0)
-      @periods = args.fetch(:periods, 1.0)
-      # frequency of conversions
-      @frequency = args.fetch(:frequency, 1.0)
-      @interest_rate = args.fetch(:interest_rate, 0.0)
-      @nominal_rate = args.fetch(:nominal_rate, 0.0)
-      @effective_rate = args.fetch(:effective_rate, 0.0)
-      @future_value = args.fetch(:future_value, 0.0)
-      @inflation_rate = args.fetch(:inflation_rate, 0.0)
+  module CompoundInterest
+    def present_value(future_value:, interest_rate:, frequency: 1.0, periods: 1)
+      factor_val = factor(interest_rate: interest_rate,
+                          frequency: frequency, periods: periods)
+      (future_value / factor_val).round(2)
     end
 
-    def a_good_investment?
-      real_rate_of_return > 0
+    def future_value(present_value:, interest_rate:, frequency: 1.0, periods: 1)
+      factor_val = factor(interest_rate: interest_rate,
+                          frequency: frequency, periods: periods)
+      (present_value * factor_val).round(2)
     end
 
-    def average_growth_rate
-      ((@future_value / @present_value)**(1.0 / @periods) - 1).round(4)
+    def effective_rate(nominal_rate:, frequency: 1)
+      effective_rate = (1 + nominal_rate / frequency)**frequency - 1
+      effective_rate.round(4)
     end
 
-    def continous_future_value
-      @future_value = @present_value * Math.exp(@interest_rate * @periods)
-      @future_value.round(2)
+    def nominal_rate(effective_rate:, frequency: 1.0)
+      root = nth_root(frequency: frequency)
+      nominal_rate = ((1 + effective_rate)**root - 1) * frequency
+      nominal_rate.round(4)
     end
 
-    def continous_present_value
-      @present_value = @future_value / Math.exp(@interest_rate * @periods)
-      @present_value.round(2)
+    def period_of_capital_duplication(interest_rate:)
+      (Math.log10(2) / Math.log10(1 + interest_rate)).round(2)
     end
 
-    def effective_rate
-      @effective_rate = (1 + @nominal_rate / @frequency)**@frequency - 1
-      @effective_rate.round(4)
+    def average_growth_rate(future_value:, present_value:, periods: 1)
+      ((future_value / present_value)**(1.0 / periods) - 1).round(4)
     end
 
-    def future_value
-      (@present_value * factor).round(2)
+    def continous_future_value(present_value:, interest_rate:, periods: 1)
+      future_value = present_value * Math.exp(interest_rate * periods)
+      future_value.round(2)
     end
 
-    def interest
-      @present_value * (factor - 1)
+    def continous_present_value(future_value:, interest_rate:, periods: 1)
+      present_value = future_value / Math.exp(interest_rate * periods)
+      present_value.round(2)
     end
 
-    def internal_rate_of_return
-      ((@future_value / @present_value)**(1.0 / @periods) - 1).round(4)
+    def real_rate_of_return(interest_rate:, inflation_rate:)
+      ((interest_rate - inflation_rate) / (1 + inflation_rate)).round 4
     end
 
-    def present_value
-      (@future_value / factor).round(2)
-    end
-
-    def nominal_rate
-      @nominal_rate = ((1 + @effective_rate)**nth_rooth - 1) * @frequency
-      @nominal_rate.round(4)
-    end
-
-    def real_rate_of_return
-      ((@interest_rate - @inflation_rate) / (1 + @inflation_rate)).round 4
+    def internal_rate_of_return(future_value:, present_value:, periods: 1)
+      ((future_value / present_value)**(1.0 / periods) - 1).round(4)
     end
 
     private
 
-    def factor
-      (1.0 + @interest_rate / @frequency)**(@frequency * @periods)
+    def factor(interest_rate:, frequency: 1.0, periods: 1)
+      (1.0 + interest_rate / frequency)**(frequency * periods).to_f
     end
 
-    def nth_rooth
-      1.0 / @frequency
+    def nth_root(frequency: 1)
+      1.0 / frequency
     end
   end
 end

data/lib/financial_math/simple_interest.rb

@@ -1,57 +1,42 @@
 module FinancialMath
-  class SimpleInterest
-    attr_reader :periods
-
-    def initialize(args)
-      @present_value = args.fetch(:present_value, 0)
-      @periods = args.fetch(:periods, 0)
-      # frequency of conversions
-      @frequency = args.fetch(:frequency, 1.0)
-      @interest_rate = args.fetch(:interest_rate, 0)
-      @future_value = args.fetch(:future_value, 0)
-      @bank_discount_rate = args.fetch(:bank_discount_rate, 0)
-    end
-
-    def bank_discount_rate
-      @bank_discount_rate = (discount / future_value).round(2)
-    end
-
-    def discount
-      (@future_value - @present_value).round(2)
-    end
-
-    def future_value
-      @future_value = @present_value * (1 + @interest_rate * factor)
-      @future_value.round(2)
+  module SimpleInterest
+    def future_value(present_value:, interest_rate:, periods: 0, frequency: 1)
+      factor_val = factor(periods: periods, frequency: frequency)
+      (present_value * (1 + interest_rate * factor_val)).round(2)
     end
 
-    def present_value
-      @present_value = @future_value / (1 + @interest_rate * factor)
-      @present_value.round(2)
+    def present_value(future_value:, interest_rate:, periods: 0, frequency: 1)
+      factor_val = factor(periods: periods, frequency: frequency)
+      (future_value / (1 + interest_rate * factor_val)).round(2)
     end
 
-    def rational_discount
-      (@present_value * @interest_rate * factor).round(2)
+    def interest_rate(discount_rate:, periods: 0, frequency: 1)
+      divisor = 1 - discount_rate * factor(periods: periods,
+                                           frequency: frequency)
+      (discount_rate / divisor).round(2)
     end
 
-    def bank_discount
-      (@future_value * @bank_discount_rate * factor).round(2)
+    def discount_rate(interest_rate:, periods: 0, frequency: 1)
+      divisor = 1 + interest_rate * factor(periods: periods,
+                                           frequency: frequency)
+      (interest_rate / divisor).round(2)
     end
 
-    def interest_rate_given_discount_rate
-      divisor = 1 - @bank_discount_rate * factor
-      @interest_rate = (@bank_discount_rate / divisor).round(2)
+    def rational_discount(present_value:, interest_rate:,
+                          periods: 0, frequency: 1)
+      factor_val = factor(periods: periods, frequency: frequency)
+      (present_value * interest_rate * factor_val).round(2)
     end
 
-    def discount_rate_given_interest_rate
-      divisor = 1 + @interest_rate * factor
-      @bank_discount_rate = (@interest_rate / divisor).round(2)
+    def bank_discount(future_value:, discount_rate:, periods: 0, frequency: 1)
+      factor_val = factor(periods: periods, frequency: frequency)
+      (future_value * discount_rate * factor_val).round(2)
     end
 
     private
 
-    def factor
-      periods / @frequency.to_f
+    def factor(periods: 0, frequency: 1)
+      periods / frequency.to_f
     end
   end
 end

data/lib/financial_math/version.rb

@@ -1,3 +1,3 @@
 module FinancialMath
-  VERSION = '0.7.0'
+  VERSION = '1.0.0'
 end

metadata

@@ -1,14 +1,14 @@
 --- !ruby/object:Gem::Specification
 name: financial_math
 version: !ruby/object:Gem::Version
-  version: 0.7.0
+  version: 1.0.0
 platform: ruby
 authors:
 - Daniel Omar Vergara Pérez
 autorequire: 
 bindir: exe
 cert_chain: []
-date: 2018-11-13 00:00:00.000000000 Z
+date: 2019-03-05 00:00:00.000000000 Z
 dependencies:
 - !ruby/object:Gem::Dependency
   name: bundler
@@ -70,6 +70,7 @@ files:
 - Rakefile
 - bin/console
 - bin/setup
+- compound_interest.png
 - financial_math.gemspec
 - lib/financial_math.rb
 - lib/financial_math/arithmetic_progression.rb
@@ -78,6 +79,7 @@ files:
 - lib/financial_math/geometric_progression.rb
 - lib/financial_math/simple_interest.rb
 - lib/financial_math/version.rb
+- simple_interest.png
 homepage: https://github.com/dany2691/financial_math
 licenses:
 - MIT
@@ -97,8 +99,7 @@ required_rubygems_version: !ruby/object:Gem::Requirement
     - !ruby/object:Gem::Version
       version: '0'
 requirements: []
-rubyforge_project: 
-rubygems_version: 2.7.7
+rubygems_version: 3.0.1
 signing_key: 
 specification_version: 4
 summary: Financial equations