Question

Use the switch structure to write a MATLAB program to compute the amount of money that accumulates in a savings account in one year. The program should accept the following input: the initial amount of money deposited in the account; the frequency of interest compounding (monthly, quarterly, semiannually, or annually); and the interest rate. Run your program for a $1000 initial deposit for each case; use a 5 percent interest rate. Compare the amounts of money that accumulate for each case.

Answer 1

It is required to use the switch feature to find the amount accumulated for each frequency of interest gained (monthly, quarterly, semi-annually or annually)

It is needed to take user input for interest rate and the initial amount of money. The user input can be taken by using the command input.

Formula for amount is

A = P(1 + r/100n)ⁿ

n = 1, 2, 4, 12

 

The MATLAB code is given below:

Input:

% asking the user for principal amount

P = input('Please input initial amount deposited: ');

% asking the user for coumpounding frequency

n = input(['Please input the frequency of interest \n' ...

'Type 1: For Annually \n' ...

'Type 2: For Semi Annually \n' ...

'Type 4: For quaterly \n' ...

'Type 12: For monthly \n']);

% asking the user for rate of interest

r = input('Please input the interest rate: ');

% taking n as switch

switch n

case (1)

Amount = P*(1 + (0.01*r/n))^(n);

disp(['Yearly: ', num2str(Amount)]);

case (2)

Amount = P*(1 + (0.01*r/n))^(n);

disp(['Semi Annually: ', num2str(Amount)]);

case(4)

Amount = P*(1 + (0.01*r/n))^(n);

disp(['Quaterly: ', num2str(Amount)]);

case(12)

Amount = P*(1 + (0.01*r/n))^(n);

disp(['Monthly: ', num2str(Amount)]);

end

Output:

Please input initial amount deposited: 1000

Please input the frequency of interest

Type 1: For Annually

Type 2: For Semi Annually

Type 4: For quarterly

Type 12: For monthly

12

Please input the interest rate: 5

Monthly: 1051.1619

 

The case was run for monthly compounding. Similarly, it was run for other frequencies also the results are shown below:

Frequency	Amount
Yearly	$ 1,050
Bi-Annually	$ 1,050.625
Quarterly	$ 1,050.9463
Monthly	$ 1,051.16

It is required to use the switch feature to find the amount accumulated for each frequency