Calculate compound interest using matlab program


Assignment Problem:

In compound interest calculation, the interest is added back to the principal amount (P) in order to earn the interest on added interest during the next compounding period. The compounded amount (A) is given by following equation:

A = P(1+ ((R⁄100)/N))(N . T)

Where, A = Compounded Amount

P = Principal Amount

R = Rate of Interest (%)

N = No. of times the interest is computed.

T = Duration in years

Given,

Case-1: P = $1000,

R = 12% (1% per month accumulating to 12% annual)

N = 12 (Interest is computed monthly, i.e. N=12, times a year)

T = 10 Years (Duration)

Case-2: P = $1000,

R = 12% (Annual rate of interest)

N = 1 (Interest is computed annually, i.e. N=1, time a year)

T = 10 Years (Duration)

Note - Write the MATLAB program in m-file and save it with the name 'CompoundInterest.m'.

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MATLAB Programming: Calculate compound interest using matlab program
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