Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The total accumulated value, including the principal sum P plus compounded interest I, is given by the formula: A = P ( 1 + r

The total accumulated value, including the principal sum P plus compounded interest I, is given by the formula: A=P(1+rn)nt Suppose a principal amount of $1,500 is deposited in a bank paying an annual interest rate of 4.3%, compounded quarterly.
Then the balance after 6 years is found by using the formula above, with P =1500, r =0.043, n =4, and t =6:A=1500(1+0.0434)46~~1938.84. So the amount A after 6 years is approximately $1,938.84.
Write a Python function named calculate_interest_income to return the final amount given the original principal, the annual interest rate, the compounding frequency, the overall length of time the interest is applied. Return your value as a formatted floating point number rounded to the nearest penny. In your main program, calculate the final amount for a principal amount of $2000.00 deposited in a bank paying an annual interest rate of 3.0%, compounded monthly for keeping 10 years.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Data Access Patterns Database Interactions In Object Oriented Applications

Authors: Clifton Nock

1st Edition

0321555627, 978-0321555625

More Books

Students also viewed these Databases questions