# Here ,We are going to write python program to compute simple interest and compound interest.

The Simple Interest and compound interest formulas are given as,

## Example Problems Using Interest Formulas

Example : Principle amount is 4000 ,rate is 7 % and time is 2 years then calculate simple and compound interest

Solution:

Simple Interest = Principle × Rate × Time = PTR/100

⇒ Simple Interest = 4000 × (7 ⁄ 100) × 2

⇒ Simple Interest = 560

∴ The simple Interest for 2 years is Rs. 560

Compound Interest = Principal × (1 + Rate)Time − Principal

So, Compound Interest = 4000 × (1 + 7 ⁄ 100)2 − 4000

⇒ Compound Interest = (4000 × 1.1449) − 4000

⇒ Compound Interest = 580

∴ The compound interest for 2 years is Rs. 580

## Program

```
# Ask user to enter principle amount
p=float(input("Enter the principle amount:"))
# Enter time in years
t=int(input("Enter the time(years):"))
# Input rate
r=float(input("Enter the rate:"))
# Calculating simple interest
si=(p*r*t)/100
# Displaying simple interest
print("The simple interest is:",si)
# Calculating compound interest
ci = p * ((1 + (r / 100 ))** t) - p
# Displaying compound interest
print("Compound interest is %.2f" % ci)

```

## Output:

```>> %Run 'simpleandcompund interest.py'
Enter the principle amount:4000
Enter the time(years):2
Enter the rate:7
The simple interest is: 560.0
Compound interest is 579.60

```

In the above code, we have taken inputs from users for values of principle amount,time in years and rate in percentage. And the calculate simple interest by multiplying all 3 values which we have taken from user and dividing all by 100 and compound interest is also calculated by using stated formulas (see in program)

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