A5

Assignment 5: Compound Interest

Description

One of the services banks typically provide to prospective customers is the ability show the customers how their investment will grow over a numbers of years at a specific interest rate.

Task

Using the formula above, create a program that allows the user to enter the initial investment P(principal), an interest rate R, the numbers of years T to accumulate the interest and displays the amount of money in the account A after T years. We will assume that N, the number of times the interest is compounded per year is 1.

• 1. Post a screen capture of your program being executed a couple of times.

  2. Post a screen capture of the code.

Question

1) Assume you inherited $100,000. How many years would it take to double your money if the interest rate is 4%?

18 Years

2) What is the minimum interest rate required in order to double an initial investment of $10,000 over 10 years?

8%