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 X0, then at the end of n years the amount of your account X becomes: X=X0(1+ r/k)^kn

1. Write the function to find the interest paid on X0. (Interest=X-X0)

2. Write a script and input X0, n, r, k and output the result in the following format by using the function you create in #1.

[The principal amount of $ X0 in n years with interest rate of r % becomes $ X when interest is compounded K times a year. Your earning amount is $( X-X0 )]

3. Run the script with principal of $1000 at the rate of 6% for five years term when the the interest is compounded;

(i) quarterly (k=4) (ii)daily* (k=365) (iii) annually (k=1) and compare the interest paid on X0. (*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 ?tle with “Earned interest for 5 years term with 6% interest rate”. You may set the y-axis limit with ylim([min max]).

Answer rating: 100% (QA)

1 part1 Name it as interestm function XI interestX0 n r k XX01 r1000kkn I ... View the full answer