Question
Future Value
Suppose you have a certain amount of money in 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 is
The terms in the formula are as follows:
• F is the future value of the account after the specified time period.
• P is the present value of the account.
• i is the monthly interest rate.
• t is the number of months.
Write a program that prompts the user to enter the account’s present value, monthly interest rate, and number of months that the money will be left in the account. The program should
pass these values to a function that returns the future value of the account after the specified number of months. The program should display the account’s future value.
Answer
Future Value Program code:
#The method 'calculateFutureValue' is used to
#returns the future value of the account after
#the specified number of months
#from 1 through 100.
def calculateFutureValue(presentValue, monthlyInterestRate, months):
future_value = presentValue * (1 + monthlyInterestRate) ** months
return future_value
# Prompt and read the user inputs
#Prompts the user to enter the account’s present value,
#monthly interest rate, and number of months that
#the money will be left in the account
presentValue = float(input("Enter the present value of the account: "))
monthlyInterestRate = float(input("Enter the monthly interest rate (in decimal form): "))
months = int(input("Enter the number of months: "))
# Calculating future value
futureValue = calculateFutureValue(presentValue, monthlyInterestRate, months)
# Displaying the future value
print("The future value of the account after", months, "months is:", futureValue)
Executed Output:
Enter the present value of the account:
5000
Enter the monthly interest rate (in decimal form):
16
Enter the number of months:
12
The future value of the account after 12 months is: 2.913111186148805e+18