compound

returns the principal plus accrued interest of an investment.

# Metadata

Platforms: desktop, server, mobile OS: mac, windows, linux, ios, android Introduced: 1.0 Security:

# Syntax

compound(interestRate, numberOfPeriods)

# Params

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

# Examples

compound(.05,20)

put theInvestment * compound(yearlyInterest,numberYears) into endValue

# 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 operations for more information.

# Tags

math,

# See

- **control structure:** function - **glossary:** return, math operation - **function:** annuity, round