matician - v2.0.0
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    Function forceOfInterest

    • Calculates the force of interest (δ) given the effective annual interest rate.

      Formula: δ = ln(1 + i)

      Parameters

      • i: number

        The effective annual interest rate as a decimal (e.g., 0.06 for 6%).

      Returns number

      The force of interest δ.

      Will throw an error if i is less than or equal to -1 (which would make ln(1 + i) invalid).