Write a program that implements a user defined function that accepts Principal Amount, Rate, Time, Number of Times the interest is compounded to calculate and displays compound interest. (Hint: CI = P * (1 + r / n)^(nt) )

Write a program that implements a user defined function that accepts Principal Amount, Rate, Time, Number of Times the interest is compounded to calculate and displays compound interest. (Hint: $\mathrm{CI}=\mathrm{P} *(1+\mathrm{r} / \mathrm{n})^{\mathrm{nt}}$ )

Below is a Python program that implements a user-defined function to calculate and display compound interest:

# Program to calculate and display compound interest

def calculate_compound_interest(P, r, t, n):
    """
    Calculate the compound interest based on the given parameters.
    P: Principal amount
    r: Annual interest rate (in decimal form)
    t: Time the money is invested for (in years)
    n: Number of times the interest is compounded per year
    """
    CI = P * (1 + r / n) ** (n * t)
    return CI

# Taking user inputs for the parameters
principal = float(input("Enter the Principal amount: "))
rate = float(input("Enter the annual interest rate (e.g., for 5% enter 0.05): "))
time = float(input("Enter the time in years: "))
compoundings_per_year = int(input("Enter the number of times the interest is compounded per year: "))

# Calculate the compound interest
compound_interest = calculate_compound_interest(principal, rate, time, compoundings_per_year)

# Display the result
print(f"The Compound Interest is: {compound_interest:.2f}")

Explanation:

• The function calculate_compound_interest takes four parameters: Principal amount (P), annual interest rate (r), time in years (t), and the number of times the interest is compounded per year (n).

• It then calculates the compound interest using the formula provided and returns the computed value.

• The user is prompted to enter the values for principal, rate, time, and the number of compoundings per year.

• The calculated compound interest is then displayed to the user.

Make sure to test the code with different inputs to verify its correctness.