Question:
Write a program that calculates the future value of an investment at a given interest rate for a specified number of years. The formula for the calculation is as follows:
futureValue = investmentAmount * (1 + monthlyInterestRate) ^ years * 12
Note: Allow users to enter the values of the investmentAmount, monthlyInterestRate and years from standard input.
Assume the number of years is always a whole number.
Answer:
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//import the Scanner class
import java.util.Scanner;
//Class header definition
public class FutureValue{
//Main method definition
public static void main(String []args){
//Create an object of the Scanner class
Scanner input = new Scanner(System.in);
//Prompt the user to enter the investment amount
System.out.println("Enter the investment amount");
//Store the input in a double variable called investmentAmount
double investmentAmount = input.nextDouble();
//Next, prompt the user to enter the interest rate
System.out.println("Enter the interest rate in percentage");
//Store the input in a double variable called interestRate
double interestRate = input.nextDouble();
//Convert the interest rate to decimal by multiplying by 0.01
interestRate *= 0.01;
//Convert the interest rate to monthly interest rate by dividing the
//result above by 12
double monthlyInterestRate = interestRate / 12;
//Prompt the user to enter the number of years
System.out.println("Enter the number of years");
//Store the input in an integer variable called years
int years = input.nextInt();
//Using the given formula, find the future value
double futureValue = investmentAmount * Math.pow(1 + monthlyInterestRate, years * 12);
//Print out the future value
System.out.println("Future value : " + futureValue);
} //End of main method
} // End of class definition
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Sample Output
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>> Enter the investment amount
1000
>> Enter the interest rate in percentage
10
>> Enter the number of years
5
Future value : 1645.3089347785854
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Step-by-step explanation:
The code above has been written using Java. The code contains comments explaining every line of the code. Please go through the comments. The actual lines of code have been written in bold-face to distinguish them from comments. A sample output has also been provided as a result of a run of the code.