Complex-Interest.md

6.2: Compound Interest

The Problem

Take money borrowed, interest and duration as input. Then, compute the compound interest rate.

Hint

Compound interest formula is:

A = P(1+r/100)t

Here, P is the principal amount; it is the amount that you borrowed. r is the interest rate in percentage and t is the time.

Solution

def compound_interest(principle, rate, time):
	interest = principle * ((1 + rate / 100) ** time)
	return interest

principle = int(input("Money you borrowed: "))
interest_rate = float(input("Interest Rate: "))
time = float(input("Overall Duration: "))

total_due = compound_interest(principle, interest_rate, time)

print("Interest Amount is:", total_due)

Try it on Programming Hero

Explanation

Inside the function, just look into the power calculation.

(1 + rate / 100) time

Rest of the part should be easy for you.

Take Away

To apply the same power on multiple things, put them inside parentheses and then apply the power.

   

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