Accounting Compound Interest
Suppose that you deposit $1000 into an account that pays 5% interest per year. At the end of each year the amount in the account is 1.05times the amount at the beginning of the year. Write a MATLAB program to calculate the amount in the account after 10, 20, 30 years.
Repeat the above problem now assuming that the interest is compounded quarterly; that is one-fourth of the annual interest (1.25%) isadded to the account every three months. Also repeat the problem with monthly compounding interest.
For the account described in the first problem write a program with a while loop to determine the number of years required for the amountto reach $5000.
Solution
clearall
clc
% First part of the homework
X=1000;%Initial money
K=0;%%Condition for iteration
i=1;%%years
while K==0
X=X*1.05;
if i<=10
X1=X; %%Money accumulated in 10 year,with interest every year
end
if i>10&&i<=20
X2=X;%%Money accumulated in 20 years, with interest every year
end
if i>20&&i<=30
X3=X;%%Money accumulated in 30 years, with interest every year
end
if i>30
K=1;%%finish the calculation
end
i=i+1;%%adding years
end
%% Second part of the homework
X=1000;%Initial money
K=0;%%Condition for iteration
i=1;%%years
j=3;%%moths
while K==0
X=X*1.25;
if i<=10*12/j
X1=X; %%Money accumulated in 10 years, with interest every four months
end
if i>10*12/j&&i<=20*12/j
X2=X;%%Money accumulated in 20 years, with interest every four months
end
if i>20*12/j&&i<=30*12/j
X3=X;%%Money accumulated in 30 years, with interest every four months
end
if i>30*12/j
K=1;%%finish the calculation
end
i=i+1;%%adding years
end
%%
X=1000;%Initial money
K=0;%%Condition for iteration
i=1;%%years
j=1;%%moths
while K==0
X=X*1.25;
if i<=10*12/j
X1=X; %%Money accumulated in 10 years, with interest every month
end
if i>10*12/j&&i<=20*12/j
X2=X;%%Money accumulated in 20 years, with interest every month
end
if i>20*12/j&&i<=30*12/j
X3=X;%%Money accumulated in 30 years, with interest every month
end
if i>30*12/j
K=1;%%finish the calculation
end
i=i+1;%%adding years
end
%% Third part of the howework
X=1000;%Initial money
i=1;%%years
j=4;%%moths
while X<=5000
X=X*1.05;
i=i+1;%%adding years
end
i=i-1 %%numbers of years
HW.m
clear all
clc
% First part of the homework
X=1000;%Initial money
K=0;%%Condition for iteration
i=1;%%years
while K==0
X=X*1.05;
if i<=10
X1=X; %%Money accumulated in 10 year,with interest every year
end
if i>10&&i<=20
X2=X;%%Money accumulated in 20 years, with interest every year
end
if i>20&&i<=30
X3=X;%%Money accumulated in 30 years, with interest every year
end
if i>30
K=1;%%finish the calculation
end
i=i+1;%%adding years
end
%% Second part of the homework
X=1000;%Initial money
K=0;%%Condition for iteration
i=1;%%years
j=4;%%moths
while K==0
X=X*1.25;
if i<=10*12/j
X1=X; %%Money accumulated in 10 years, with interest every four months
end
if i>10*12/j&&i<=20*12/j
X2=X;%%Money accumulated in 20 years, with interest every four months
end
if i>20*12/j&&i<=30*12/j
X3=X;%%Money accumulated in 30 years, with interest every four months
end
if i>30*12/j
K=1;%%finish the calculation
end
i=i+1;%%adding years
end
%%
X=1000;%Initial money
K=0;%%Condition for iteration
i=1;%%years
j=1;%%moths
while K==0
X=X*1.25;
if i<=10*12/j
X1=X; %%Money accumulated in 10 years, with interest every month
end
if i>10*12/j&&i<=20*12/j
X2=X;%%Money accumulated in 20 years, with interest every month
end
if i>20*12/j&&i<=30*12/j
X3=X;%%Money accumulated in 30 years, with interest every month
end
if i>30*12/j
K=1;%%finish the calculation
end
i=i+1;%%adding years
end
%% Third part of the howework
X=1000;%Initial money
i=1;%%years
j=4;%%moths
while X<=5000
X=X*1.05;
i=i+1;%%adding years
end
i=i-1 %%numbers of years