/*
* 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.CalculationContext;
import javax.money.MonetaryException;
import java.math.BigDecimal;
/**
* The formula for doubling time with continuous compounding is used to
* calculate the length of time it takes doubles one's money in an account or
* investment that has continuous compounding. It is important to note that this
* formula will return a time to double based on the term of the rate. For
* example, if the monthly rate is used, the answer to the formula will return
* the number of months it takes to double. If the annual rate is used, the
* answer will then reflect the number of years to double.
*
* @author Anatole Tresch
* @see http://www.financeformulas.net/Doubling-Time-Continuous-Compounding.html
*/
public final class DoublingTimeWithContCompounding {
private DoublingTimeWithContCompounding() {
}
/**
* This function returnes the number of periods required to double an amount
* with continous compounding, given a rate.
*/
public static BigDecimal calculate(Rate rate) {
if(rate.get().signum()==0){
throw new MonetaryException("Cannot calculate DoublingTimeWithCompounding with a rate=zero");
}
return BigDecimal.valueOf(Math.log(2.0d)).divide(rate.get(), CalculationContext.mathContext());
}
}