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compound   function



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