Exercise

Calculating simple interest

Learning to calculate simple interest is an important first step in building up to calculating the price of a bond.

Here you will apply what you have learned to calculate simple interest on a savings account.

A savings account offers a 3% interest rate (simple interest) per year paid yearly. You decide to invest USD 10,000 in this account for a period of 10 years.

Instructions

100 XP

Assign the present value, rate, and number of periods to pv, r, and n, respectively.
Using the formula for simple interest, calculate and print the total amount of simple interest earned after 10 years.
Calculate and print the value of the account after 10 years.