CoCalc -- 9.29 Aiuka Narankaev.ipynb

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ubuntu2004

Kernel: Python 3 (system-wide)

Make a 1-time deposit of $1,000 into a savings account that earns a 4.4% annual interest (compounded monthly) for 30 years.

For this taks we will need to find a value of an account after a fixed amount of time P - Principal (1000) r - Annual interest rate (0.044) n - Number of compoundings per year (12) c - Contribution to principal per compounding period (none) y - Years (30)

In [8]:

def com_int(p,r,n,c,y):
    for i in range (n*y): #we use loop to find principal after 30 years(360 months)
        p = p*(1+r/n)+c
    return p

In [9]:

com_int(1000,0.044,12,0,30) #input our values from first plan here

Out[9]:

3734.3952805626127

In [0]:

Make monthly deposits of $5 into a savings account that earns a 4.4% annual interest (compounded monthly) for 30 years.

For this task we will need to find a value of an account after a fixed amount of time with monthly contributions.

In [11]:

com_int(5,0.044,12,5,30) #This time we input 5 for c since we contribute $5 each month

Out[11]:

3747.392813533614

Thus, we see that the second plan is slightly better, which allows us to conclude that both plans are almost the same after 30 years.

In [0]:

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