In mathematics we had exponents which were the power to a given any base number, in excel we have a similar inbuilt function known as POWER function which is used to calculate the power of a given number or base, to use this function we can use the keyword =POWER( in a cell and provide two arguments one as number and another as power.
Syntax: =POWER (number, power)
The POWER function syntax has the following arguments:
- Number Required. The base number. It can be any real number.
Power Required. The exponent to which the base number is raised.
Example: Let’s look at some Excel POWER function examples and explore how to use the POWER function as a worksheet function in Microsoft Excel:
Based on the Excel spreadsheet above, the following POWER examples would return:
Example 2: For different mathematical calculations, we can use POWER function in Excel.
Suppose, we have to find out the compound interest for which the formula is
Amount = Principal (1 + r/n)nt
- Where r is the rate of interest, n is number of times interest is compounded per year and t is the time
- If an amount of $10000 is deposited into an account (saving) at an interest rate of 7% annually, compounded monthly, the value of the investment after 6 years can be calculated using the above compound interest formula.
- Where Principal = $4000, rate = 7/100 that is 0.07, n =12 (compounded monthly), time =6 years
Using the compound interest formula and implementing it into excel formula using the POWER function in Excel:
The investment balance after 6 years is $15.201,05504
- For a better understanding, we can represent the power function in this way. POWER(X, Y) or POWER(X^Y) both are same only.
- The POWER function is applied only for numerical values. Anything other than numerical values, it will throw the error as #VALUE! If any one of the parameters contains non-numerical values, we will get the error. Below image shows the example of the error.