CPAN112 – Fundamentals of Numeric Computing – Assignment 04

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Fundamentals of Numeric Computing

CPAN 112 | Assignment 4

Compound Interest Program

Write a program to find the Compound Interest

 

  • Use the python input() function that takes an input (principal amount, rate of interest,
    time) from the user
  • Time should be in years, months and days (You may reuse the time function created in
    the simple interest lab)
  • Remember, that user might not be mathematically familiar with the terms like compounding period, periodic rate. You might consider a statement that any person understands, like the one given below to make your program easy to use.
  • “ Choose 1 for annual rate of interest, 2 for semi- annually, 4 for quarterly……..”
  • Next, write a function to calculate the compound interest
  • Print the compound interest. Print statement should have all the relevant information that user might be interested in.

NOTE-

  • Run your program at least 3 times using different compounding periods. You should have 3 screenshots. Use Principal as $10000, rate 10%, time as 1 year, 6 months and 143 days for all the 3 different cases. Only change the compounding period.

 

Solution : Python Code

Note: Format it yourself.

principle = float(input(“Enter Principle Amount: “))
ROI = float(input(“Enter Rate of Interest: “))
ROI = round(ROI/100, 4)
# Calculating Time
print(‘”Enter Appropiate Time below”‘)
def get_time():
days = int(input(” Enter Days (0 for none): “))
months = int(input(” Enter months (0 for none): “))
year = int(input(” Enter year (0 for none): “))
totaltime = year + (months/12) + (days/365)
return round(totaltime, 4)
total_time = get_time()
print()
print(”’How your Interest is Calculated?
Choose Number from below:
“1” for annually
“2” for semi-annually
“4” for quarterly
“12” for monthly”’)
interest_frequency = int(input(“Interest Frequency: “))
# Formulas:
# A = P * (1 + r/n)^(n*t)
# CI = P * (1 + r/n)^(n*t) – P
# Calculating Interest Compoundly
def compount_interest():
return (principle * ((1 + ROI/interest_frequency)**(interest_frequency*total_time))) – principle
Compound_Interest = compount_interest()
# Printing OUTPUT
print(“\n\nYour ALL INPUTS:\nPrinciple:”,principle,”\nRate of Interest:”,ROI*100,”\nTime (in
years:”,total_time,”\nCompound Frequency:”,interest_frequency,”\n\n”)
print(“Compount Interest is:”, round(Compound_Interest, 2))
print(“Total Amount is:”, round(Compound_Interest+principle, 2))

 

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