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  3. Introduction to Financial Concepts in Python

Exercise

Growth and rate of return

Growth and Rate of Return are two concepts that are ubiquitous throughout the financial world. Recall that the cumulative returns from investing $100 in an asset that grows at 5% per year, over a 2 year period can be calculated as:

$$100*(1 + 0.05)^2$$

Instructions

100 XP
  • Calculate the future value (cumulative return) of a $100 investment which grows at a rate of 6% per year for 30 years in a row and assign it to future_value.