How to use (two) vectors as variables in a compounding interest equation, so that the equation's results can be plotted on a 2D plane?
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I would like to explore the effect of changing the value of two certain variables in an equation for compounding interest. To make that exploration easier, I would like to assign vectors to those (two) variables, so that I can plot the result of the compounding interest equation on a 2D plane, and 'see' the effects of changing the two axis-variables.
Below is the code that I'm using and the error message that I receive. As you can see, A and I are the vectors, and the other variables are given constant values. It seems that I have a problem with the dimensions of the vector located in the exponent?
Thanks for any help!
A = 20:1:65;
I = 0:1000:250000;
Y = 65-A;
P = 0;
IR = 0.05;
CF = 1;
YOR = 30;
ETR = zeros(46,length(I));
ETR(I>=1000 & I<15000) = 0;
ETR(I>=15000 & I<25000) = 0.15;
ETR(I>=25000 & I<100000) = 0.25;
ETR(I>=100000 & I<=250000) = 0.35;
ACI = zeros(1,length(A));
ACI(A>=20 & A< 50) = 5500;
ACI(A>=50 & A<=65) = 6500;
ACD = zeros(251,length(A));
ACD(A>=20 & A< 50) = 5500;
ACD(A>=50 & A<=65) = 6500;
[A,I] = meshgrid(A,I);
EVC_IRA = ACI.*(((1+(IR/CF)).^(CF.*Y)-1)/(IR/CF));
EVD_IRA = ACD.*ETR.*(((1+(IR/CF)).^(CF.*Y)-1)/(IR/CF));
Error: Error using .* Matrix dimensions must agree.
1 Comment
per isakson
on 7 Sep 2015
Edited: per isakson
on 7 Sep 2015
Hint:
>> z = (((1+(IR/CF)).^(CF.*Y)-1)/(IR/CF));
>> whos z ACD ETR
Name Size Bytes Class Attributes
ACD 251x46 92368 double
ETR 46x251 92368 double
z 1x46 368 double
ACD.*ETR   will throw an error
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