Suppose you want to deposit a certain amount of money into a saving account, and then leave it alone to draw interest for the next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you need to deposit today to make that happen? You can use the following formula, which is known as the present value formula, to find out:
P= F/(1/+r)^n
The terms in the formula are:
P is the present value, or the amont that you need to deposit today. F is the future value that you want in the account. (In this case, F is $10,000.)r is the annual interest rate (expressed in decimal form)
n is the number of years that you plan to let the money sit in the account.
Write a program that has a function named presentValue that performs this calculation. The function should accept the future value, annual interest rate, and number of years as arguments. It should return the present value, which is the amount that you need to
deposit today. Demonstrate the function in a program that lets the user experiment with different values for the formula's terms.
Additional Requirements
Other Requirements: Here's what I have so far:
import java.util.Scanner;
public class FutureValue
{
public static void main(String[] args);
{
int principle;
int rate;
int years;
}
}
splash();
Scanner input = new Scanner(System.in);
System.out.println("What was the amount of the principle deposit? ");
double principle = input.nextDouble();
System.out.println("What is the annual interest rate? ");
double rate = input.nextDouble();
System.out.println("What is the term of the investment in years? ");
double years = input.nextDouble();
double futureValue = calcFV(profit, rate, years);
System.out.println("Your investment will be worth approximately: " + futureValue);
{
public static void splash()
}
System.out.println("This program will calculate approximately the future value of an investment based on these three variables:");
System.out.println("The amount of the principle deposit");
System.out.println("The amount of the annual interest rate");
System.out.println("The term of the investment in years");
}
public static double calcFV(double p, double r, double t) // p = double principle r = double rate t = double years
{
double futureValue = p * Math.pow( (1.0 + r/100), t);
return futureValue;
}
}