Python Program to Compute Compound Interest

Python Program to Compute Compound Interest

Python program to calculate compound interest; In this tutorial, you will learn how to calculate compound interest with and without using function.

Let us have a look at the compound interest rate formula.

A = p * (pow((1 + r / 100), t))

A=final amount
p=initial principal balance
r=interest rate
t=number of time periods elapsed

Python Program to Compute Compound Interest

Now let’s see each python program for calculate or compute compound interest; as shown below:

  • Python program to compute compound interest
  • Python Program to Calculate Compound Interest using Function

1: Python program to compute compound interest

  • Use a python input() function in your python program that takes an input (principal amount, rate of interest, time) from the user.
  • Next, calculate the compound interest using this p * (pow((1 + r / 100), t))  formula.
  • After the end program, print the compound interest.
#Python program to compute compound interest

p = float(input("Enter the principal amount : "))

t = float(input("Enter the number of years : "))

r = float(input("Enter the rate of interest : "))

#compute compound interest
ci =  p * (pow((1 + r / 100), t)) 

#print
print("Compound interest : {}".format(ci))

Output

Enter the principal amount :  1000 
Enter the number of years :  2 
Enter the rate of interest :  5 
Compound interest : 1102.5 

2: Python Program to Calculate Compound Interest using Function

  • Define a function in your python program that accepts the argument and compute compound interest by using this p * (pow((1 + r / 100), t)) formula.
  • Use a python input() function in your python program that takes an input (principal amount, rate of interest, time) from the user.
  • Next, call a compute interest function with specific arguments.
  • After the end program, print the compound interest.
#Python program to compute compound interest using function

def compoundInterest(p, r, t):
    ci = p * (pow((1 + r / 100), t)) 
    return ci
  
 
p = float(input("Enter the principal amount : "))

t = float(input("Enter the number of years : "))

r = float(input("Enter the rate of interest : "))

#call compound interest
ci =  compoundInterest(p, r, t) 

#print
print("Compound interest : {}".format(ci))

Output

Enter the principal amount :  1000 
Enter the number of years :  2 
Enter the rate of interest :  5 
Compound interest : 1102.5  

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AuthorAdmin

My name is Devendra Dode. I am a full-stack developer, entrepreneur, and owner of Tutsmake.com. I like writing tutorials and tips that can help other developers. I share tutorials of PHP, Python, Javascript, JQuery, Laravel, Livewire, Codeigniter, Node JS, Express JS, Vue JS, Angular JS, React Js, MySQL, MongoDB, REST APIs, Windows, Xampp, Linux, Ubuntu, Amazon AWS, Composer, SEO, WordPress, SSL and Bootstrap from a starting stage. As well as demo example.

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