Write a function with name compound_interest that takes three arguments: principle, rate and years in order. the rate is float and years is an integer. The function signature should look like the following. This function should return the compounded interest a float value.
def compound_interest(principle, rate, years):
# This is where you code go.
# compute comp_interest
return comp_interest
The simple interest is calculated as (principle * rate * years) / 100.
If you calculate simple interest on principle every year and add the interest to principle, the result will the principle for next year. This is how you calculate the compounded interest.
Let us take a case of principle = 100, rate = 5 (percent per year) and years = 2 (years) i.e. compound_interest(100, 5, 2):
Please use the iterative approach as mentioned above instead of direct formulae to calculate the compounded interest.
Taking you to the next exercise in seconds...
Want to create exercises like this yourself? Click here.
Loading comments...