How to Calculate Simple and Compound Interests in Python

In this example we will show how to write Python codes to calculate single and compound interests. The input data include principal, annual interest rate, and time.

Source Code

#! /usr/bin/env python3
# -*- coding: utf-8 -*-

principal = float(input("Enter the principal:"))
rate = float(input("Enter the rate(annual interest rate):"))
time = int(input("Enter the time(years):"))

#Simple interet
simpleInterest = principal * rate / 100 * time

#Compund interest
compoundInterest = principal * (1 + rate / 100) ** time - principal
print("The simple interest is:", simpleInterest)
print("The compound interest is:", compoundInterest)

Output:

Enter the principal:100000
Enter the rate(annual interest rate):10
Enter the time(years):40
The simple interest is: 400000.0
The compound interest is: 4425925.55681761