Python Program for compound interest

In this article, we will learn about the solution and approach to solve the given problem statement.

Problem statement −We are given with three input values i.e principle, rate & time and we need to compute compound interest.

The code given below shows the process of computation of compound interest.

The formula used here is

Compound Interest = P(1 + R/100)r

Where,

P is the principal amount

R is the rate and

T is the time span

The implementation is given below

Example

 Live Demo

def compound_interest(principle, rate, time):
   CI = principle * (pow((1 + rate / 100), time))
   print("Compound interest : ", CI)
# main
compound_interest(10000, 7.78, 2)

Output

Compound interest : 11616.528400000001

All variables and functions are declared in global scope as shown in the figure below.

Conclusion

In this article, we learned about the approach to compute compound interest.