# Python Program for compound interest

• Difficulty Level : Easy
• Last Updated : 11 Aug, 2022

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: Principle (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(principle, rate, time):` `    ``# Calculates compound interest``    ``Amount ``=` `principle ``*` `(``pow``((``1` `+` `rate ``/` `100``), time))``    ``CI ``=` `Amount ``-` `principle``    ``print``(``"Compound interest is"``, CI)`  `# Driver Code``compound_interest(``10000``, ``10.25``, ``5``)`

Output

`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:  Finding compound interest of given values without using pow() function.

## Python3

 `# Python code``# To find compound interest` `# inputs``p``=` `1200`   `# principle 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)`

Output

`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!

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