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# Compound interest .... !!!

Posted on 2003-12-11
Medium Priority
736 Views
hi everyone, i need help on that question ....

what is the compound interest formula if i'm using 'i' for the rate and 'n' for the numbers of years ???

i already wrote two functions but they're not working !!!!

//============================================
// First one
//========

public float Total(float i,int n)            //Savings -> return balance after n years and i interest
{
for(int count=0; count<n; count++)
{
Balance *= Math.pow(( 1 + i ), n);
}
return Balance;
}
//================

// Second one
//========

public float Total(float i,int n)            //Savings -> return balance after n years and i interest
{
return Balance *= Math.pow(( 1 + i ), n);
}
//============================
i don't know what one is the correct one .... i'm not a business major :P

and if by any chance ..... could anyone tell me how to do it in the recursive way !!!

thankz
0
Question by:hackermen5
[X]
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LVL 86

Expert Comment

ID: 9919687
Out of interest (no pun intended) why would you want to do it recursively?
0

LVL 35

Expert Comment

ID: 9919717
I reckon it says to as part b of the homework... ;-)
0

LVL 35

Assisted Solution

TimYates earned 300 total points
ID: 9919805
Compound Interest is calculated like:

public calculateCompoundInterest( double rate, double period )
{
balance = balance * Math.pow( 1+rate, period ) - balance ;
}

Make sure your "balance" variable is a double...(not an int)

Tim
0

LVL 86

Expert Comment

ID: 9919821
Tell your teacher that recursion should be avoided where it's not necessary (as it is not here;-))

The formula for simple interest is:   F  =  P ( 1 + R / N ) ^ ( N * T )

Where :  F   =  final amount
P   =  initial amount
R   = interest rate
N   = number of compounding periods
T   = Time ( in years )

0

LVL 30

Expert Comment

ID: 9919966
More importantly, the recursive function that he's written will go on looping forever as there's no stopping condition.

BTW, hackermen5, this is not a place to tell you the correct formula :-) we can help you with the coding/ implementation if you face problems.

I guess he needs recursion in computing the value of (1 + R/N) ^ T.... (for computing the exponential value). Strange way.

Mayank.
0

LVL 35

Expert Comment

ID: 9920030
>  More importantly, the recursive function that he's written will go on looping forever as there's no stopping condition.

Which one do you think is recursive?
0

LVL 35

Expert Comment

ID: 9920031
;-)
0

LVL 30

Assisted Solution

Mayank S earned 150 total points
ID: 9920120
public float Total(float i,int n)            //Savings -> return balance after n years and i interest
{
return Balance *= Math.pow(( 1 + i ), n);
}
//============================

Sorry, I thought I saw a call to Total () instead of pow :-) didn't read it completely.... thought that the first was non-recursive and the second recursive.

Anyways, he's still not told us why he needs the recursion.
0

LVL 2

Expert Comment

ID: 9920240
public float Total(float i,int n)
{
float balance=0;
for(int count=0; count<n; count++)
{

balance*= Math.pow(( 1 + i ), n);
}
return balance;
}
0

LVL 30

Expert Comment

ID: 9920283
Dannin, your balance will always remain zero.
0

LVL 30

Expert Comment

ID: 9920299
Also, by the way, why is balance supposed to multiplied by (( 1 + i ) ^ n) 'n' number of times?
0

LVL 2

Accepted Solution

Dannin earned 300 total points
ID: 9920301
Opps I'm too used to addition lol

public float Total(float i,int n)
{
float balance=1;
for(int count=0; count<n; count++)
{

balance*= Math.pow(( 1 + i ), n);
}
return balance;
}
Here u go
0

LVL 2

Expert Comment

ID: 9920314
Well isn't it the way the person who asked the question wanted it?
0

LVL 92

Expert Comment

ID: 9923823
> Tell your teacher that recursion should be avoided

except if you're learing about recursion :)
0

LVL 86

Expert Comment

ID: 9923910
Then an example that needs recursion should be given
0

LVL 92

Expert Comment

ID: 9924061
An (familiar) problem that can be solved with recursion is just as suitable.
0

LVL 1

Author Comment

ID: 9924836
i'm sorry uys ... but my teaher is not that nice to give us an example of recursion .... i didn't even understand the recursion concept yet .....

anyway ..... thanks for ur help guys .....
0

LVL 30

Expert Comment

ID: 9925774
By the way, why did you accept my comment as an assist? (I was still waiting to assist after getting some comments from you :-) )
0

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