Question

Assuming there are no deposits other than the original investment, the balance in a savings account after one year may be calculated as

                             Amount = Principal *(1 + Rate/T)^T

Principal is the original investment in the savings account, Rate is the annual interest rate, and T is the number of times the interest is compounded during a year ( T is 4 if the interest is compounded quarterly).

NOTE: the periodic rate r in the expression (1 + r) must match the duration of the period. That is, a monthly period must use a monthly rate. When Rate is expressed as an Annual Percentage Rate (APR), then a monthly rate r is Rate/12.

Write a program in C++ that asks for the principal, the interest rate, and the number of times the interest is compounded. It should display a formatted report similar to

Interest Rate: 4.25%

Times Compounded: 12

Principal: $ 1000.00

Interest: $ 43.34

Amount in Savings: $ 1043.34

RUN THE FOLLOWING TEST CASES:

1) $ 5000 at 7.5% compounded 4 times.

2) $ 7500 at 5.2 % compounded 12 times.

3) $ 1000 at 10 % compounded(daily) 360 times.

Answer 1

C++ Program:

#include<iostream>

#include<cmath>

using namespace std;

int main()

{

  double rate,interest,principal,amount;

int times;

cout<<"Interest Rate: ";

cin>>rate;

cout<<"Times compunded: ";

cin>>times;

cout<<"Principal: $";

cin>>principal;

rate=rate/100;

interest=principal*pow((1+rate/times),times)-principal;

amount=principal+interest;

cout<<"Interest: $"<<interest<<endl;

cout<<"Amount in Savings: $"<<amount<<endl;

  return 0;

}

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