Python: Compute the future value of a specified principal amount, rate of interest, and a number of years

Python Basic: Exercise-39 with Solution

Future Value Calculator

Write a Python program to compute the future value of a specified principal amount, rate of interest, and number of years.

The formula for future value with compound interest is FV = P(1 + r/n)^nt.
FV = the future value;
P = the principal;
r = the annual interest rate expressed as a decimal;
n = the number of times interest is paid each year;
t = time in years.

Test Data : amt = 10000, int = 3.5, years = 7
Expected Output : 12722.79

Sample Solution:

Python Code:

# Define the principal amount (initial investment).
amt = 10000
# Define the annual interest rate as a percentage.
int = 3.5
# Define the number of years.
years = 7
# Calculate the future value of the investment using the compound interest formula.
future_value = amt * ((1 + (0.01 * int)) ** years)
# Round the future value to two decimal places and print it.
print(round(future_value, 2))

Sample Output:

12722.79

Explanation:

The said Python code calculates the future value of an investment of $10000, with an interest rate of 3.5% and a number of years of 7.

1. A variable "amt" is defined and assigned the value of 10000.
2. Another variable "int" is defined and assigned the value of 3.5.
3. A variable "years" is defined and assigned the value of 7.
4. A variable "future_value" is defined and assigned the value of the calculation of the future value of the investment. The calculation is done by the mathematical formula amt*((1+(0.01*int)) ** years).
5. The final value is then rounded off to 2 decimal places and printed using the round() and print() function.

The final output will be 12722.79 which is the future value of the investment after 7 years with an interest rate of 3.5%.

Python Code Editor:

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