Embedded Files
Description
Description
Inflationλ() calculates period-specific inflation factors to uniformly adjust amounts for inflation across a reporting period.
How it Works
Input: The function reads an input table containing Annual Inflation Rates and their Effective Dates (when each rate begins).
Scheduling: Internally, the function uses the effective dates to place those annual rates under the appropriate timeline headings.
Conversion: It then reads the timeline to determine its periods (months, quarters, years) and converts effective annual rates into equivalent periodic rates using the interest rate conversion formula: Period Rate = (1 + Annual Rate) ^ (1 / Periods Per Year) -1
Compounding: The periodic rates are then compounded and converted from percentages to factors.
Output: The result is a series of inflation factors can be multiplied by a monetary amount to adjust that amount for the effect of inflation.
Syntax
Syntax
Inflationλ( Timeline, [EndDates?], InflationRates, EffectiveDates)
Arguments:
Arguments:
Timeline
(Required) The model's timeline
EndDates?
(Optional) TRUE (default), Timeline displays period end dates. FALSE, Timeline display period start dates.
InflationRates
(Required) One or more forecasted annual inflation percentages.
EffectiveDates
(Required) Dates for when each inflation rate is effective.
NOTE! The first effective period is when inflation starts. Normally, we do not want the first period to be impacted, in which case, make the first effective date after the first period date.
Page updated
Google Sites
Report abuse