the
compound
of
(
rate ,
periods )
compound
(
rate ,
periods )
Rate and periods yield integer
s, number
s, or complex
es.
put futureValue/compound(.10,12) into presentValue
put presentValue*compound(.10,12) into futureValue
The compound
function is used to calculate the present or future value of a compound interest-bearing account. Rate is the interest rate per period, and periods is the number of periods over which the value is calculated.
The formula for the compound
function is:
. compound
(rate, periods) = (1+rate)^periods
The compound
function is faster and more accurate than using the above formula.
The following example calculates the value in one year of an account earning 7.5 percent interest compounded monthly:
on calcInterest ask "Enter the beginning balance:" with empty put "Value in 1 year $" & it * compound(.075/12, 12) end calcInterest
You can use complex
arguments to this function, but what this means exactly is up to the accountants and economists to figure out, not me.