compound

Type

function

Summary

Returns the principal plus accrued interest of an investment.

Syntax

compound(<interestRate>, <numberOfPeriods>)

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.

Parameters

Name	Type	Description
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.

Examples

compound(.05,20)

put theInvestment * compound(yearlyInterest,numberYears) into endValue

Value

Name	Type	Description
return	number	The compound function returns a positive number.

Related

control structure: function

function: annuity, round

glossary: return, math operation

Compatibility and Support

Introduced

LiveCode 1.0

OS

mac

windows

linux

ios

android

Platforms

desktop

server

mobile