|Interpolated and Curve-Fitted Rates family|
|Interpolated and Curve-Fitted Projections where a Rate is applied to a timeperiod|
|Introduction: The Interpolated and Curve-Fitted Rates family is, like the families of the Stepped Rate Projections and Constant Rate Projections categories, concerned with projecting amounts over time. Instead of having the rate change smoothly and progressively over time (constant rate), or with sharp staircase-like step-changes, the rates that are input are simply data points. There are two ways you can establish the rates between the data points that correspond to the two principal functions in this family: you can interpolate or you can curve-fit. |
In terms of application, ramped rates are good for things like sales or production projections, where you want the ability effectively to "draw a curve" of the most likely scenario (stepped rates are good for contractual things like rent and loans).
|Functions in the Interpolated and Curve-Fitted Rates family (2)|