Name: compound

Type: function

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

Summary:

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

Introduced: 1.0

OS: mac, windows, linux, ios, android

Platforms: desktop, server, mobile

Example:

compound(.05,20)

Example:

put theInvestment * compound(yearlyInterest,numberYears) into endValue

Parameters:

interestRate(number):

A positive number. The <interestRate> is expressed as a fraction of 1 so,

for example, an 8% rate is written .08.

numberOfPeriods(integer):

A positive number.

Returns(number):

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 <interestRate> is the

interest per month.

If a math operation on finite inputs produces a non-finite output, an

execution error is thrown. See <math operation|math operations> for more

information.

References: function (control structure), annuity (function),

round (function), return (glossary), math operation (glossary)

Tags: math