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When investing money, an important concept to know is compound interest. The equation FV = PV (1+rate)periods . This relates the following four quantities.
The present value (PV) of your money is how much money you have now.
The future value (FV) of your money is how much money you will have in the future.
The interest rate per period (rate) is how much interest you earn as a percentage. The period is length of time between interest payments.
The number of periods (periods) is how many periods in the future this calculation is for.
Finish the following code, run it, and submit the printed number. Provide at least four digits of precision after the decimal point.
def future_value(present_value, annual_rate, periods_per_year, years):
rate_per_period = annual_rate / periods_per_year
periods = periods_per_year * years
# Put your code here.
print "$1000 at 2% compounded daily for 3 years yields $", future_value(1000, .02, 365, 3)
Posted Date: 10/19/2012 5:54:17 PM | Location : United States
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