The interest you get at the end of n year, at a flat annual rate of r%,
Question:
The interest you get at the end of n year, at a flat annual rate of r%, depend on how the interest in compounded. If the interest is added to your account k times a year with the principal amount of X 0 . then at the end of n years the amount of your account X becomes:
1. Write the function to find the interest paid on X 0 . (Interest=X-X 0 )
2. Write a script and input X 0 , n, r, k and output the result in the following format by using the function you create in #1. The principal amount of $ X 0 in n years with interest rate of r% becomes $ X when interest is compounded K times a year. Your earning amount is S (X-X 0 ).
3. Run the script with principal of $1000 at the rate of 6% for five years term when the interest is compounded; (i) quarterly (k=4) (ii)daily' (k=365) (iii) annually (k=1) and compare the interest paid on X 0 . (*Do not consider the leap year effect for daily)
4. Plot the bar graph which shows the interest in five years with above compound interval. Label x-axis with "Compound Interval, 1: Quarterly, 2: Daily, 3: Annually", and y-axis with "Interest, $". Add title with "Earned interest for 5 years term with 6% interest rate". You may set the y-axis limit with ylim([min max]).
Fundamentals of Ethics for Scientists and Engineers
ISBN: 978-0195134889
1st Edition
Authors: Edmund G. Seebauer, Robert L. Barry