Python program to calculate compound interest

Compound interest calculation in Python :

Compound interest is an interest calculation process that calculates the interest based on the initial principal and accumulated interests on a compounding period. Interest is added to the principal and for the next period, interest is gained on the accumulated interest.

In this post, I will show you how to find the compound interest in python programming with one example.

Formula to find compound interest :

The below formula is used to find compound interest :

A = P (1 + R/(100 * n))^nt

Here, A = The final amount i.e. intial amount + compound interest P = Principal amount or initial amount R = The yearly rate of interest n = Number of compounding periods yearly t = Number of years

Python program :

def findCompoundInterest(P, R, t, n):
    return P * pow((1 + R/(100 * n)), n*t);

P = float(input("Enter principal amount : "))
R = float(input("Enter annual rate of interest : "))
t = float(input("Enter time in years : "))
n = float(input("Enter number of compounding periods per year : "))

A = findCompoundInterest(P,R,t,n)

print("Total amount : {}".format(A))
print("Compound interest : {}".format(A-P))

findCompoundInterest method is used to find out the total amount including compound interest i.e. A. We are taking the inputs as float from the user and calculating the values.

Sample output :

Enter principal amount : 1000
Enter annual rate of interest : 20
Enter time in years : 10
Enter number of compounding periods per year : 2
Total amount : 6727.499949325611
Compound interest : 5727.499949325611

Enter principal amount : 10000
Enter annual rate of interest : 5
Enter time in years : 10
Enter number of compounding periods per year : 1
Total amount : 16288.94626777442
Compound interest : 6288.9462677744195

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