Returns compound interest parameters.

Category: | Financial |

is numeric, and specifies the initial amount.

Range | a ≥ 0 |

is numeric, and specifies the future amount (at the end of n periods).

Range | f ≥ 0 |

is numeric, and specifies the periodic interest rate expressed as a fraction.

Range | r ≥ 0 |

is an integer, and specifies the number of compounding periods.

Range | n ≥ 0 |

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:

The accumulated value
of an investment of $2000 at a nominal annual interest rate of 9 percent,
compounded monthly after 30 months, can be expressed as

The value returned is
2502.54. The second argument has been set to missing, indicating
that the future amount is to be calculated. The 9 percent nominal
annual rate has been converted to a monthly rate of 0.09/12. The rate
argument is the fractional (not the percentage) interest rate per
compounding period.

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