Chapter 3, Problem 20PC

Interest Earned

Assuming there are no deposits other than the original investment, the balance in a savings account after one year may be calculated as

$\text{amount=principal*}{\left(\text{1+}\frac{\text{Rate}}{\text{T}}\right)}^{\text{T}}$

• Where Principal is the balance in the account

• Rate is the annual interest rate,

• T is the number of times the interest is compounded during a year (e.g., T is 4 if the interest is compounded quarterly).

Write a program that asks for the principal, the interest rate, and the number of times the interest is compounded. It should display a report similar to the following:

Interest Rate:    4.25%

Times Compounded:    12

Principal:    $ 1000 .00

Interest:    $ 43 .33

Final balance:    $ 1043.33