The idea behind compound interest is that when interest is applied to some base

Question

The idea behind compound interest is that when interest is applied to some base amount regularly over a given time period, each interest payment increases the base amount, so that the next interest payment is calculated against the increased base amount. For example, say you have a $1000 savings bond that matures in 10 years. The first year it earns $100 interest (10% of $1000). This interest is added to the base amount (S 1000 + S 100-> SI 100). The second year the bond earns $110 interest (10% of si 100), and the base increases to S1210 (S1100 + SI 10-> SI 210); and so on. After 10 years, the bond grows to $2593.74. Implement the following function using a while loop. Provide appropriate assertions. def compound(base, percent, time): Determines total cost of a loan. Preconditions: base - principle amount to apply interest to (float 0) percent percent change applied to base (float 0) time time period for change (int + 0) Postconditions: returns final - total amount of a principle with compound interest added.

Explanation / Answer

def compound(base,percent,time):

  assert 0 < base
assert 0 < percent
assert 0 < time
while(time!=0): //runs the loop till time = 0
base = base + base*percent/100 //adds interest to the base for each year
time = time - 1 //decrement time value
return round(base,2) // return total rounded to two decimal places

base = float(input("Enter base"))
percent = float(input("Enter interest percent"))
time = int(input("Enter time in years"))
print(compound(base,percent,time))

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