(Financial application: compound value) Suppose you save $100 each month into a

Question

(Financial application: compound value) Suppose you save $100 each month into a savings account with the annual interest rate 5%. Thus, the monthly interest rate is 0.05/12 = 0.00417. After the first month, the value in the account becomes

100 * (1 + 0.00417) = 100.417

After the second month, the value in the account becomes

(100 + 100.417) * (1 + 0.00417) = 201.252

After the third month, the value in the account becomes

(100 + 201.252) * (1 + 0.00417) = 302.507

and so on.

Write a program that prompts the user to enter a monthly saving amount and displays the account value after the sixth month. (In Exercise 5.30, you will use a loop to simplify the code and display the account value for any month.)

Sample Run: Enter the monthly saving amount: 100 (Enter)

After the sixth month, the account value is $608.81

Explanation / Answer

#include <stdio.h>

int main()
{
   double Principal,After_Interest;
   int i;

    printf("Enter the monthly saving amount:");
    scanf("%lf",&Principal);

    for(i=1;i<=6;i++)
    {
       After_Interest = Principal*(1+0.05/12);
       printf("Amount at the end of %d month is %lf ", i,After_Interest);
       Principal = After_Interest + 100;
    }

    return 0;
}

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