<doc>

<legacy_id>1156</legacy_id>

<name>compound</name>

<type>function</type>

<syntax>

<example>compound(<i>interestPerPeriod</i>,<i>numberOfPeriods</i>)</example>

</syntax>

<library></library>

<objects>

</objects>

<synonyms>

</synonyms>

<classification>

<category>Math, Logic, &amp; Dates</category>

</classification>

<references>

<function tag="annuity">annuity Function</function>

<function tag="round">round Function</function>

</references>

<history>

<introduced version="1.0">Added.</introduced>

</history>

<platforms>

<mac/>

<windows/>

<linux/>

<ios/>

<android/>

</platforms>

<classes>

<desktop/>

<server/>

<web/>

<mobile/>

</classes>

<security>

</security>

<summary><glossary tag="return">Returns</glossary> the principal plus accrued interest of an investment.</summary>

<examples>

<example>compound(.05,20)</example>

<example>put theInvestment * compound(yearlyInterest,numberYears) into endValue</example>

</examples>

<description>

<p>Use the <b>compound</b> <control_st tag="function">function</control_st> to calculate the value of an investment that earns interest.</p><p/><p><b>Parameters:</b></p><p>The <i>interestRate</i> is a positive number. The <i>interestRate</i> is expressed as a fraction of 1 so, for example, an 8% rate is written<code> .08</code>.</p><p/><p>The <i>numberOfPeriods</i> is a positive number.</p><p/><p><b>Value:</b></p><p>The <b>compound</b> <control_st tag="function">function</control_st> <glossary tag="return">returns</glossary> a positive number.</p><p/><p><b>Comments:</b></p><p>The formula for the value of an compound-interest-bearing account is</p><p/><p> (1 + <i>interestRate</i>)^( <i>numberOfPeriods</i>)</p><p/><p>The <b>compound</b> <control_st tag="function">function</control_st> calculates this value.</p><p/><p>The <i>numberOfPeriods</i> and the <i>interestRate</i> must use the same unit of time. For example, if the periods are months, the interest rate is the interest per month.</p>

</description>

</doc>