Python Program for compound interest
Let us discuss the formula for compound interest. The formula to calculate compound interest annually is given by:
A = P(1 + R/100) t
Compound Interest = A – P
Where,
A is amount
P is the principal amount
R is the rate and
T is the time span
Example:
Input: Principal (amount): 1200, Time: 2, Rate: 5.4
Output: Compound Interest = 133.099243
Example
Python3
# Python3 program to find compound # interest for given values. def compound_interest(principal, rate, time): # Calculates compound interest Amount = principal * ( pow (( 1 + rate / 100 ), time)) CI = Amount - principal print ( "Compound interest is" , CI) # Driver Code compound_interest( 10000 , 10.25 , 5 ) |
Compound interest is 6288.946267774416
Time Complexity: O(1) since no loop is used the algorithm takes up constant time to perform the operations
Auxiliary Space: O(1) since no extra array is used so the space taken by the algorithm is constant.
Method#2: Input taking from user.
In this method we are going to calculate the compound interest by taking input from the user by using above formula.
Python3
# Python3 program to find compound # interest for input taking from user. def compound_interest(principal, rate, time): # Calculates compound interest Amount = principal * ( pow (( 1 + rate / 100 ), time)) CI = Amount - principal print ( "Compound interest is" , CI) # Driver Code #Taking input from user. principal = int ( input ( "Enter the principal amount: " )) rate = int ( input ( "Enter rate of interest: " )) time = int ( input ( "Enter time in years: " )) #Function Call compound_interest(principal,rate,time) #This code is contributed by Vinay Pinjala. |
Input:
Enter the principal amount: 3000
Enter rate of interest: 5
Enter time in years: 3
Output:
Compound interest is 472.875
Time Complexity: O(1) since no loop is used the algorithm takes up constant time to perform the operations
Auxiliary Space: O(1) since no extra array is used so the space taken by the algorithm is constant.
Method #3: Finding compound interest of given values without using pow() function.
Python3
# Python code # To find compound interest # inputs p = 1200 # principal amount t = 2 # time r = 5.4 # rate # calculates the compound interest a = p * ( 1 + (r / 100 )) * * t # formula for calculating amount ci = a - p # compound interest = amount - principal amount # printing compound interest value print (ci) |
133.0992000000001
Time Complexity: O(1) since no loop is used the algorithm takes up constant time to perform the operations
Auxiliary Space: O(1) since no extra array is used so the space taken by the algorithm is constant
Please refer complete article on Program to find compound interest for more details!
Method #4: using for loop:
Python3
def compound_interest(principal, rate, time): Amount = principal for i in range (time): Amount = Amount * ( 1 + rate / 100 ) CI = Amount - principal print ( "Compound interest is" , CI) # Driver Code compound_interest( 1200 , 5.4 , 2 ) #This code is contributed by Jyothi pinjala |
Compound interest is 133.0992000000001
Time complexity: O(1)
Auxiliary Space: O(1)
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