Syntax:
compoundFactor = compound( rate, periods )
Description:
Returns the compounding factor for the given interest rate and number of periods. The parameters rate and periods are double precision variables, and the returned value compoundFactor is also a double precision value. The interest rate should be expressed as a fraction of 1; for example, 5.2 percent should be expressed as 0.052.
Note:
compound
uses the following formula:
compoundFactor =
(1 + rate
)^{periods}
See Also:
annuity