Compound interest
As you saw in the previous exercise, both time and the rate of return are very important variables when forecasting the future value of an investment.
Another important variable is the number of compounding periods, which can greatly affect compounded returns over time.
This exercise is part of the course
Introduction to Financial Concepts in Python
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Predefined variables
initial_investment = 100
growth_periods = 30
growth_rate = 0.06
# Calculate the value for the investment compounded once per year
compound_periods_1 = ____
investment_1 = ____
print("Investment 1: " + str(round(investment_1, 2)))