COMPOUND (principal, interest, periods)

The COMPOUND function calculates the compound amount, based on the principal and interest rate per period over the specified number of periods. The formula used is:

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For example, to find out the compound amount on a principal of $500, at an annual interest rate of 13.5%, over 12 years, use the formula:

COMPOUND(500,13.5%,12)

Ability calculates the compound amount and displays the result 2285.1796 or $2,285.18 (depending on the currency formatting of the cell – use the Number command from the Format menu to change it).

See also:

Other financial functions