cterm (compound term) Function |
cterm is a Financial function that gives the number of compounding periods required for a single investment to grow to a future value using a fixed interest rate.
Use cterm to find how long it will take an investment invested at a fixed compounded interest rate to grow to a specific amount.
Syntax:
cterm(interest, future value, present value)
interest: the interest rate in percent.
future value: the value that the investment will grow to.
present value: the present value of the investment.
Example:
How long will it take you to double $25000 invested at 6% annual rate?
cterm(6/12,50000,25000)/12 gives 11.5813.
It will take about 11.6 years to double your money at an annual rate of 6%.