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  3. Bond Valuation and Analysis in Python

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.