Question

USE PYTHON PROGRAMMING LANGUAGE.

Compound Interest

A high school economics teacher wants to demonstrate the power of compound interest to her students.

She would like you to write a program so that students can input their principal amount and the interest rate they will receive and show them how their investment will grow over time.

The formula to calculate the total income of an investment (compounded annually) over time is:

amount = P (1 + I)<sup>Y</sup>

Where:

• P is the principal amount (the original amount of the investment)
• I is the interest rate (Remember! Use the decimal notation - 5% is .05)
• Y is the amount of time in years

For example: A 10,000 dollar investment at an interest rate of 3.75% for 5 years will be worth 16,105.10 dollars with interest.

1. Ask your user to provide an investment amount as an integer and save it to an integer variable

   • Your prompt should say "Please enter an amount: "
   • If the input is not an integer, print the message “Error!” and end the program

2. Ask your user to provide an interest amount as a decimal and save it to a float variable

   • Your prompt should say "Please enter an interest rate: "
   • If the input is not a float, print the message “Error!” and end the program

3. Write a function named display_interest that takes two arguments: amount and interest_rate.

4. The body of the function should print the amount the user will have saved with interest every year for a 10 year period

   • No dollar signs or rounding should be used

5. Call your display_interest function and pass it the user’s inputted values. Print your results to the screen.

Answer 1

The amount given in the question is incorrect. I checked in an online calculator and my output is matching the online calculator.

Here is the code in python.

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def display_interest(principal, interest_rate):
    interest_rate /= 100.0
    for year in range(1, 11):
        print('Year:{} Amount User have saved: {}'.format(year, principal * ((1 + interest_rate)**year)))


def main():
    try:
        principal = int(input('Please enter an amount: '))
        interest_rate = float(input('Please enter an interest rate: '))
        display_interest(principal, interest_rate)
    except:
        print('Error!')

main()

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