Exercise

Calculating compound interest

Compound interest is much more applicable in the real world and is an important feature in calculating the price of a bond, as you will see in the next chapter.

Now imagine the same savings account pays 3% per year as compound interest instead of simple interest. As before, you invest USD 10,000 for a period of ten years.

Instructions

100 XP

Assign the present value, rate, and number of periods to pv, r, and n, respectively.
Find how much money the savings account will have after ten years and print the result.
Calculate and print the amount of interest earned over the ten years.