Java™ How To Program (Early Objects), Tenth Edition

Application: Compound-Interest Calculations

Let’s use the for statement to compute compound interest. Consider the following problem:

A person invests $1,000 in a savings account yielding 5% interest. Assuming that all the interest is left on deposit, calculate and print the amount of money in the account at the end of each year for 10 years. Use the following formula to determine the amounts:

a = p (1 + r)ⁿ

where

p is the original amount invested (i.e., the principal)

r is the annual interest rate (e.g., use 0.05 for 5%)

n is the number of years

a is the amount on deposit at the end of the nth year.

The solution to this problem (Fig. 5.6) involves a loop that performs the indicated calculation for each of the 10 years the money remains on deposit. ...