CoCalc Public Files2020-09-29-112728.ipynbOpen with one click!
Author: Julia Burnside
Views : 48
Compute Environment: Ubuntu 20.04 (Default)

Compare and comment on the following two saving plans:

In [1]:
i1=1000 r1=0.044 n1=12 c1=1 t1=30 i2=0 r2=0.044 n2=12 c2=5 t2=30 def oneDeposit(p, r, n, c, t): oneDepositTotal=(p*(1+(r/n))**(n*t)) return oneDepositTotal def monthlyPayments(p, r, n, c, t): monthlyPaymentsTotal=(c*((1+(r/n))**(n*t)-1)/(r/n)) return monthlyPaymentsTotal print("Total Principal using a 1 time deposit plan:", '\n') print("Initial Pricipal: $", i1, '\n') print("Annual Interest: ", round(r1*100, 2), "%", '\n') print("Compoundings per year: ", n1, '\n') print("Contributions per compounding period: $", c1, '\n') print("Compounding period (In years): ", t1, '\n') ptotal1=oneDeposit(i1, r1, n1, c1, t1) print("Cumulative amount deposited: $", i1, '\n') print("Cumulative account balance: $", round(ptotal1, 2), '\n', '\n') print("Total Principal using a monthly payment plan:", '\n') print("Initial Pricipal: $", i2, '\n') print("Annual Interest: ", round(r2*100, 2), "%", '\n') print("Compoundings per year: ", n2, '\n') print("Contributions per compounding period: $", c2, '\n') print("Compounding period (In years): ", t2, '\n') ptotal2=monthlyPayments(i2, r2, n2, c2, t2) print("Cumulative amount deposited: $", c2*n2*t2, '\n') print("Cumulative account balance: $", round(ptotal2, 2), '\n', '\n') if (ptotal1<ptotal2): print("A monthly payment plan will produce greater savings of $", round(ptotal2-ptotal1, 2), '\n''\n') else: print("A 1 time deposit plan will produce greater savings of $", round(ptotal1-ptotal2, 2), '\n''\n') if (i1<(c2*n2*t2)): print("A monthly payment plan will require a lesser deposit amount of $", round((c2*n2*t2)-i1, 2), '\n''\n') else: print("A 1 time deposit plan will require a lesser deposit amount of $", round(i1-(c2*n2*t2), 2), '\n''\n')
Total Principal using a 1 time deposit plan: Initial Pricipal: $ 1000 Annual Interest: 4.4 % Compoundings per year: 12 Contributions per compounding period: $ 1 Compounding period (In years): 30 Cumulative amount deposited: $ 1000 Cumulative account balance: $ 3734.4 Total Principal using a monthly payment plan: Initial Pricipal: $ 0 Annual Interest: 4.4 % Compoundings per year: 12 Contributions per compounding period: $ 5 Compounding period (In years): 30 Cumulative amount deposited: $ 1800 Cumulative account balance: $ 3728.72 A 1 time deposit plan will produce greater savings of $ 5.67 A monthly payment plan will require a lesser deposit amount of $ 800