CIST 1305UNIT 09 DROP BOX ASSIGNMENT1. Create the logic for a program that calculates and displays the amount of money youwould have if you invested $5000 at 2 percent simple interest for one year. Create aseparate method to do the calculation and return the result to be displayed.Structure Hint:startDeclarationsnum variable to store amount calculatedvariable to store amount calculated method to do calculation ()output "After one year the balance is ", variable to store amountcalculatedstopnum method to do calculation ()Declarations=num variable to store amount calculatednum constant for principal amountnum constant for interest ratevariable to store amount calculated = constant for principal amount *(1 + constant for interest rate)return variable to store amount calculated

Algorithm to Calculate Simple Interest1. Start2. Declare a function named…

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