Question

(C++) Suppose you have a certain amount of money is a savings account that earns compound monthly interest, and you want to calculate the amount that you will have after a specific number of months. The formula, which is known as the future value formula, is: F = P x (1 + i)t The terms in the formula are as follows:

a. F is the future value of the account after the specified time period

b. P is the present value of the account

c. i is the monthly interest rate

d. t is the number of months

Write a program that prompts the user to enter the account’s present value, monthly interest rate, and the number of months that the money will be left in the account. The program should pass these values to a function named futureValue that returns the future value of the account, after the specified number of months. The program should display the account’s future value.

Answer 1

PROGRAM:

#include <iostream>
using namespace std;
float futureValue(float P,float i,float t); // Declaring the Function Prototype
int main()
{
// Declaring the variables
float present_value,monthly_interest,num_months,result;
  
// Prompt for the user to enter the present value of the account
cout << "Enter Present Value of the account: ";
// Reading the input from user
cin >> present_value;
  
// Prompt for the user to enter the monthly interest rate
cout << "Please enter the monthly interest rate: ";
// Reading the input from user
cin >> monthly_interest;
  
// Prompt for the user to enter the number of months that the money will be left in account
cout << "Enter the number of months: ";
// Reading the input from user
cin >> num_months;
  
// Calling futureValue function to calculate the future value of the account and store it in the result variable
result = futureValue(present_value,monthly_interest,num_months);
  
// Displaying the future value of account to the user
cout << "\nAccount's Future Value after " << num_months << " months is " << result;
}

// Definition of the function futureValue
float futureValue(float P,float i,float t)
{
float F; // Declaring the result variable
  
F = (P*(1+i)*t); // Calculating the futureValue
  
return F; // Returning the futureValue
}

Please refer to the following screenshot of the program for indentation of the code:

OUTPUT: