/*
* Copyright (c) 2012, 2013, Credit Suisse (Anatole Tresch), Werner Keil. 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.
*/
package org.javamoney.calc.common;
import org.javamoney.calc.ComplexCalculation;
import org.javamoney.calc.ComplexType;
import org.javamoney.calc.ComplexValue;
import java.math.BigDecimal;
import java.util.Objects;
import javax.money.MonetaryAmount;
import javax.money.MonetaryOperator;
/**
* <img src= "http://www.financeformulas.net/Formula%20Images/Continuous%20Compounding%201.gif" />
* <p>
* The continuous compounding formula is used to determine the interest earned on an account that is
* constantly compounded, essentially leading to an infinite amount of compounding periods. The
* effect of compounding is earning interest on an investment, or at times paying interest on a
* debt, that is reinvested to earn additional monies that would not have been gained based on the
* principal balance alone. By earning interest on prior interest, one can earn at an exponential
* rate. The continuous compounding formula takes this effect of compounding to the furthest limit.
* Instead of compounding interest on an monthly, quarterly, or annual basis, continuous compounding
* will effectively reinvest gains perpetually.
*
* @author Anatole
* @author Werner
*/
public final class ContinuousCompoundInterest implements MonetaryOperator {
/**
* the target rate, not null.
*/
private final Rate rate;
/**
* the periods, >= 0.
*/
private final int periods;
/**
* Private constructor.
*
* @param rate the target rate, not null.
* @param periods the periods, >= 0.
*/
private ContinuousCompoundInterest(Rate rate, int periods) {
this.rate = Objects.requireNonNull(rate);
if (periods < 0) {
throw new IllegalArgumentException("Periods < 0");
}
this.periods = periods;
}
/**
* Access a MonetaryOperator for calculation.
*
* @param rate the target rate, not null.
* @param periods the periods, >= 0.
* @return the operator, never null.
*/
public static ContinuousCompoundInterest of(Rate rate, int periods) {
return new ContinuousCompoundInterest(rate, periods);
}
public int getPeriods() {
return periods;
}
public Rate getRate() {
return rate;
}
/**
* Performs the calculation.
*
* @param amount the base amount, not null.
* @param rate the target rate, not null.
* @param periods the periods, >= 0.
* @return the resulting amount, never null.
*/
public static MonetaryAmount calculate(MonetaryAmount amount, Rate rate, int periods) {
return CompoundInterest.calculate(amount, rate, periods, 10000);
}
@Override
public MonetaryAmount apply(MonetaryAmount amount) {
return calculate(amount, rate, periods);
}
@Override
public String toString() {
return "ContinuousCompoundInterest{" +
"rate=" + rate +
", periods=" + periods +
'}';
}
}