Question
(Financial application: compound value) Suppose you save $100 each month into a savings account with an annual interest rate of 5%. Therefore, the monthly interest rate is 0.05/12 = 0.00417. After the first month, the value in the account becomes
100 * (1 + 0.00417) = 100.417
After the second month, the value in the account becomes
(100 + 100.417) * (1 + 0.00417) = 201.252
After the third month, the value in the account becomes
(100 + 201.252) * (1 + 0.00417) = 302.507
and so on.
Write a program that prompts the user to enter a monthly saving amount and displays the account value after the sixth month. Here is a sample run of the program:
Enter the monthly saving amount: 100
After the sixth month, the account value is 608.81
Answer
#Prompt the user to enter a monthly saving amount
Amount=int(input())
#Initialize constant value
Interestrate =float( 0.00417)
#Compute first month account value
total= float(Amount * (1+Interestrate))
#Compute second month account value
total= float((Amount+ total) *(1+Interestrate))
#Compute third month account value
total= float((Amount+ total) *(1+Interestrate))
#Compute fourth month account value
total= float((Amount+ total) *(1+Interestrate))
#Compute fifth month account value
total= float((Amount+ total) *(1+Interestrate))
#Compute sixth month account value
total= float((Amount+ total) *(1+Interestrate))
#Display result
print(total)
Output:
100
608.8181155768638