(Financial application: compute the future investment value)

Question

Write a function that computes the future investment value at a given interest rate for a specified number of years. The future investment is determined using the formula in Programming Exercise 2.19 in Chapter 2 Programming Exercise from the Book.

Use the following function header:

def futureInvestmentValue(investmentAmount,

monthlyInterestRate, years):

For example, futureInvestmentValue(10000, 0.05/12, 5) returns 12833.59.

Write a test program that prompts the user to enter the investment amount and the annual interest rate in percent and prints a table that displays the future value for the years from 1 to 30.

Answer 1

Here's a start:

def futureInvestmentValue(investmentAmount, monthlyInterestRate, years):

return investmentAmount*((1 + monthlyInterestRate)**(years*12))

initial = input("Enter the investment amount: ")

annualInterestRate = input("Enter the annual interest rate: ")

for i in range(30):

value = futureInvestmentValue(float(initial), float(annualInterestRate)/12, i+1)

print(f"year: {i+1} \t value: {value}")