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Function documentation Exponential Interest Calculation  Locate the document in its SAP Library structure

Use

Exponential interest calculation is also known as compound interest. The accrued interest is added to the principal (interest capitalization, interest calculation) and interest is then calculated again. 

Features

Compound interest can be calculated annually or several times during the year.  You can differentiate between the following types of compound interest calculation:

    Annual Calculation of Compound Interest

    Calculation of Compound Interest During the Year

    Continuous Interest Calculation

 

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