Name: compound

Type: function

Syntax: compound(<interestPerPeriod>, <numberOfPeriods>)

Summary: <return|Returns> the principal plus accrued interest of an investment.

Introduced: 1.0

OS: mac,windows,linux,ios,android

Platforms: desktop,server,web,mobile

Example:

compound(.05,20)

Example:

put theInvestment * compound(yearlyInterest,numberYears) into endValue

Parameters:

interestPerPeriod:

numberOfPeriods: A positive number.

interestRate: A positive number. The interestRate is expressed as a fraction of 1 so, for example, an 8% rate is written .08.

Returns: The <compound> <function> <return|returns> a positive number.

Description:

Use the <compound> <function> to calculate the value of an investment that earns interest.

The formula for the value of an compound-interest-bearing account is

(1 + <interestRate>)^( <numberOfPeriods>)

The <compound> <function> calculates this value.

The <numberOfPeriods> and the <interestRate> must use the same unit of time. For example, if the periods are months, the interest rate is the interest per month.

References: function (control_st), annuity (function), round (function), return (glossary)

Tags: math