Python Program to Compute Compound Interest

Python Program to Compute Compound Interest

The objective of this Python post, you will see various Python examples that cover the following:

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

Now let’s see each one by one:

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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