/* * 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()); } }