Functions

compound

Supported By

Syntax

[the] compound of ( rate , periods )

compound ( rate , periods )

Rate and periods yield integers, numbers, or complexes.

Examples

put futureValue/compound(.10,12) into presentValue
put presentValue*compound(.10,12) into futureValue

Description

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.

Script

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

Note

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.

See Also

annuity