COMPOUND Function

Returns compound interest parameters.

Category:	Financial
Returned data type:	DOUBLE

Syntax

Arguments

Details

Example

Syntax

COMPOUND(a, f, r, n)

Arguments

a

specifies the initial amount.

Range	a ≥ 0
Data type	DOUBLE

f

specifies the future amount (at the end of n periods).

Range	f ≥ 0
Data type	DOUBLE

r

specifies the periodic interest rate expressed as a fraction.

Range	r ≥ 0
Data type	DOUBLE

n

specifies the number of compounding periods.

Range	n ≥ 0
Data type	INTEGER

Details

The COMPOUND function returns the missing argument in the list of four arguments from a compound interest calculation. The arguments are related by the following equation:

table with 1 row and 1 column , row1 column 1 , f equals eh . open 1 plus r close to the n , end table

One missing argument must be provided. A compound interest parameter is then calculated from the remaining three values. No adjustment is made to convert the results to round numbers.

If n=0, then

and

is equal to 1.

Note: If you choose r as your missing value, then COMPOUND returns an error.

Example

The following statement illustrates the COMPOUND function. The accumulated value of an investment of $2000 at a nominal annual interest rate of 9%, compounded monthly after 30 months, can be expressed as follows:

select compound(2000,.,0.09/12,30);

The value returned is 2502.5435276.

Last updated: February 23, 2017