Question

Write a program that implements a user defined function that accepts Principal Amount, Rate, Time, Number of Times the interest is compounded to calculate and displays compound interest.
(Hint: CI = ((P*(1+R/N))^NT)

Answer 1

The hint given in the question has a mistake. The formula (P*(1+R/N)^NT) will give us the amount, not the Compound Interest.

Program:
#Defining the function
def calculate(p,r,t,n=1):
#calculating the amount
amount = p * (1 + r/(n * 100))**(n * t)
#calculating the compund interest and rounding it off to 2 decimal places
ci = round(amount - p, 2)
#displaying the value of the compound interest
print("The compound interest will be ",ci)

#asking the principal, rate and time
p = float(input("Enter the principal amount: "))
r = float(input("Enter the rate of interest: "))
t = float(input("Enter total time: "))
n = int(input("Number of times the interest is compounded in a year\n(e.g.Enter 1 for yearly, 2 for half-yearly): "))
if(n > 365):
calculate(p,r,t,n)
else:
print("Maximum number of times an interest is compunded can not be more than 365")

​OUTPUT:
Enter the principal amount: 10000
Enter the rate of interest: 8
Enter total time: 5
Number of times the interest is compounded in a year
(e.g. Enter 1 for yearly, 2 for half-yearly): 4
The compound interest will be 4859.47