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Exercise 8

Challenge: This program uses a bit of math. Don't let that scare you away -- try it anyway.

Assume you have $1,000.00 in the bank, and you've somehow managed to find a bank that pays you 5% (this is a wish-fulfillment fantasy) compounded interest every year. After one year, you will have $1,050 ($1,000 times 1.05). After two years, you will have $1,050 times 1.05, or $1102.50. Create a variable named balance that contains the amount of money you will have after 5 years, then print the result. Use a single expression if you can to set balance to the correct value.

Solution

balance = (1000.00 * 1.05 * 1.05 * 1.05
                   * 1.05 * 1.05)
print(balance)

The program prints 1276.2815625000003 as the final balance. That's not precisely correct. The actual value should be 1276.2815625. That's close enough when you consider the imprecision of using floats.

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