How to Calculate Compound Interest in Python

Submitted by razormist on Tuesday, May 14, 2024 - 23:49.

In this tutorial, we will program 'How to Calculate Compound Interest in Python'. We will learn how to calculate compound interest based on user input. The objective is to allow you to calculate your total compound interest using the principal amount, years, and interest rate. I will provide a sample program to demonstrate the actual coding of this tutorial.

This topic is very easy to understand; just follow the instructions I provide, and you can also do it yourself with ease. The program I will show you covers the basics of programming for calculating compound interest. I will do my best to provide you with the easiest way for getting the interest value. So, let's start with the coding.

Getting Started:

First you will have to download & install the Python IDLE's, here's the link for the Integrated Development And Learning Environment for Python https://www.python.org/downloads/.

Creating Main Function

This is the main function of the application. The following code will display a simple GUI in terminal console that will display program. To do this, simply copy and paste these blocks of code into the IDLE text editor.

def compound_interest(principal, rate, time):
        Amount = principal * (pow((1 + rate / 100), time))
        CI = Amount - principal
        print("Compound interest is", CI)
 
 
 
ret = False
 
while True:
        print("\n================== Calculate Compound Interest ==================\n\n")
 
 
        principal = int(input("Enter the principal amount: "))
        rate = int(input("Enter rate of interest: "))
        time = int(input("Enter time in years: " ))
 
        compound_interest(principal,rate,time)
 
 
        opt = input("\nDo you want to try again?(yes/no): ")
 
        if opt.lower() == 'yes':
                ret=False
        elif opt.lower() == 'no':
                ret=True
                print("Exiting program....")
 
        else:
                print("Please enter yes/no:")
                break
 
        if ret == False:
                continue

This Python script calculates compound interest based on the principal amount, interest rate, and time period provided by the user. It defines a function compound_interest to perform the calculation and print the result.

Then, it prompts the user to input the principal amount, interest rate, and time period, calls the compound_interest function with these values, and displays the calculated compound interest. Finally, it asks the user if they want to try again or exit the program.

Output:

The How to Calculate Compound Interest in Python source code that I provide can be download below. Please kindly click the download button.

There you have it we successfully created How to Calculate Compound Interest in Python. I hope that this simple tutorial help you to what you are looking for. For more updates and tutorials just kindly visit this site. Enjoy Coding!

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