Question

When a bank account pays compound interest, it pays interest not only on the principal amount that was deposited into the account, but also on the interest that has accumulated over time. Suppose you want to deposit some money into a savings account, and let the account earn compound interest for a certain number of years. The formula for calculating the balance of the account after a specified number of years is:

A=P (1+rn)ntA=P (1+rn)nt

The terms in the formula are:

• A is the amount of money in the account after the specified number of years.

• P is the principal amount that was originally deposited into the account.

• r is the annual interest rate.

• n is the number of times per year that the interest is compounded.

• t is the specified number of years.

Write a program that makes the calculation for you. The program should ask the user to input the following:

• The amount of principal originally deposited into the account

• The annual interest rate paid by the account

• The number of times per year that the interest is compounded (For example, if interest is compounded monthly, enter 12. If interest is compounded quarterly, enter 4.)

• The number of years the account will be left to earn interest

Once the input data has been entered, the program should calculate and display the amount of money that will be in the account after the specified number of years.

Can someone do this program in Java.

Answer 1

Hi. I have answered similar questions before. Here is the completed code for this problem. Comments are included, go through it, learn how things work and let me know if you have any doubts or if you need anything to change. If you are satisfied with the solution, please rate the answer. Thanks

Note: If you want the GUI version of this program, let me know, I have the code.

// CompoundInterestCalculator.java

import java.util.Scanner;

public class CompoundInterestCalculator {

      public static void main(String[] args) {

            // defining a Scanner to read input

            Scanner scanner = new Scanner(System.in);

            // asking and reading each input

            System.out.print("Enter principal amount: ");

            double P = scanner.nextDouble();

            System.out.print("Enter annual interest rate: ");

            double r = scanner.nextDouble();

            System.out.print("Enter total period (years): ");

            double t = scanner.nextDouble();

            System.out.print("Enter number of times per year"

                        + " that the interest is compounded: ");

            double n = scanner.nextDouble();

            // calculating total amount

            double A = P * Math.pow(1 + (r / n), n * t);

            // finding interest amount

            double interest = A - P;

            // displaying total amount & total interest earned with a precision of 2

            // digits after decimal point

            System.out.printf("Total amount at maturity: $%.2f\n", A);

            System.out.printf("Total interest earned: $%.2f\n", interest);

      }

}

/*OUTPUT*/

Enter principal amount: 5000

Enter annual interest rate: 0.05

Enter total period (years): 10

Enter number of times per year that the interest is compounded: 12

Total amount at maturity: $8235.05

Total interest earned: $3235.05