Calculating compounding frequencies
Different compounding frequencies can greatly affect how much your money will grow. In this exercise, we are going to compare three different savings accounts, each offering a different annual rate at a different compounding frequency, to see which one will grow your money the most.
In each example you will start with an initial investment of $10,000 that you invest for ten years. numpy_financial has already been imported for you as npf.
This exercise is part of the course
Bond Valuation and Analysis in Python
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Calculate the growth of USD 10,000 invested in the first account
account_1 = npf.fv(rate=____, nper=____, pmt=____, pv=____)
# Print the value of the first savings account
____