You are a new graduate and you just landed your first job earning about $60K/yea
ID: 3785630 • Letter: Y
Question
You are a new graduate and you just landed your first job earning about $60K/year. You vaguely recall one of your professors saying, 'You should start investing with your first pay check.' He said something like, “10% or $500.00 a month for 40 years and you would be a millionaire.” Create a Java Application that you will use to calculate the compoundinginterest with a for loop.
You will use an interest rate of 6% (.06) and start with a principal investment of $2000.00 (That is what’s left from graduation gifts after putting money down on a new car). You will run your code for 40 years and output annual totals. Your compounding interest equation should look something like:
Total = (Total + (Monthly * 12)) * (IntRate + 1)
Please write your application so that you can change the interest rate, allow for a different initial principal investment, and output the total amounts invested verses the total amount earned. (Note: Principal = Total for the first iteration)
For example:
Test1: Principal=2000.00, Monthly=500.00, Inrate=0.06, Years=40
Test2: Principal=0.00, Monthly=500.00, Inrate=0.04, Years=40
Explanation / Answer
CompountInterest.java:
import java.util.Scanner;
public class CompountInterest {
public static void main(String args[]){
float principalAmount,interestRate,monthlyAmount=500f;
Scanner scanner = new Scanner(System.in);
System.out.println("Enter principal amount");
principalAmount=scanner.nextFloat();
float total=principalAmount, totalInvested=principalAmount;
System.out.println("Enter interest rate");
interestRate=scanner.nextFloat();
for(int i=1;i<=40;i++){
System.out.println("Year " + i);
totalInvested+=monthlyAmount*12;
total=(total + (monthlyAmount * 12)) * (interestRate + 1);
System.out.println("Total Amount Invested : "+ totalInvested + ", Total amount earned : "+total);
}
scanner.close();
}
}
Test Run 1:
Enter principal amount
2000
Enter interest rate
.06
Year 1
Total Amount Invested : 8000.0, Total amount earned : 8480.0
Year 2
Total Amount Invested : 14000.0, Total amount earned : 15348.799
Year 3
Total Amount Invested : 20000.0, Total amount earned : 22629.725
Year 4
Total Amount Invested : 26000.0, Total amount earned : 30347.506
Year 5
Total Amount Invested : 32000.0, Total amount earned : 38528.355
Year 6
Total Amount Invested : 38000.0, Total amount earned : 47200.055
Year 7
Total Amount Invested : 44000.0, Total amount earned : 56392.055
Year 8
Total Amount Invested : 50000.0, Total amount earned : 66135.58
Year 9
Total Amount Invested : 56000.0, Total amount earned : 76463.71
Year 10
Total Amount Invested : 62000.0, Total amount earned : 87411.53
Year 11
Total Amount Invested : 68000.0, Total amount earned : 99016.22
Year 12
Total Amount Invested : 74000.0, Total amount earned : 111317.19
Year 13
Total Amount Invested : 80000.0, Total amount earned : 124356.21
Year 14
Total Amount Invested : 86000.0, Total amount earned : 138177.58
Year 15
Total Amount Invested : 92000.0, Total amount earned : 152828.22
Year 16
Total Amount Invested : 98000.0, Total amount earned : 168357.9
Year 17
Total Amount Invested : 104000.0, Total amount earned : 184819.38
Year 18
Total Amount Invested : 110000.0, Total amount earned : 202268.53
Year 19
Total Amount Invested : 116000.0, Total amount earned : 220764.62
Year 20
Total Amount Invested : 122000.0, Total amount earned : 240370.48
Year 21
Total Amount Invested : 128000.0, Total amount earned : 261152.7
Year 22
Total Amount Invested : 134000.0, Total amount earned : 283181.84
Year 23
Total Amount Invested : 140000.0, Total amount earned : 306532.75
Year 24
Total Amount Invested : 146000.0, Total amount earned : 331284.7
Year 25
Total Amount Invested : 152000.0, Total amount earned : 357521.75
Year 26
Total Amount Invested : 158000.0, Total amount earned : 385333.03
Year 27
Total Amount Invested : 164000.0, Total amount earned : 414813.0
Year 28
Total Amount Invested : 170000.0, Total amount earned : 446061.75
Year 29
Total Amount Invested : 176000.0, Total amount earned : 479185.44
Year 30
Total Amount Invested : 182000.0, Total amount earned : 514296.53
Year 31
Total Amount Invested : 188000.0, Total amount earned : 551514.3
Year 32
Total Amount Invested : 194000.0, Total amount earned : 590965.1
Year 33
Total Amount Invested : 200000.0, Total amount earned : 632783.0
Year 34
Total Amount Invested : 206000.0, Total amount earned : 677109.94
Year 35
Total Amount Invested : 212000.0, Total amount earned : 724096.5
Year 36
Total Amount Invested : 218000.0, Total amount earned : 773902.25
Year 37
Total Amount Invested : 224000.0, Total amount earned : 826696.3
Year 38
Total Amount Invested : 230000.0, Total amount earned : 882658.06
Year 39
Total Amount Invested : 236000.0, Total amount earned : 941977.5
Year 40
Total Amount Invested : 242000.0, Total amount earned : 1004856.1
Test Run 2:
Enter principal amount
0
Enter interest rate
.04
Year 1
Total Amount Invested : 6000.0, Total amount earned : 6240.0
Year 2
Total Amount Invested : 12000.0, Total amount earned : 12729.6
Year 3
Total Amount Invested : 18000.0, Total amount earned : 19478.783
Year 4
Total Amount Invested : 24000.0, Total amount earned : 26497.934
Year 5
Total Amount Invested : 30000.0, Total amount earned : 33797.85
Year 6
Total Amount Invested : 36000.0, Total amount earned : 41389.766
Year 7
Total Amount Invested : 42000.0, Total amount earned : 49285.355
Year 8
Total Amount Invested : 48000.0, Total amount earned : 57496.77
Year 9
Total Amount Invested : 54000.0, Total amount earned : 66036.64
Year 10
Total Amount Invested : 60000.0, Total amount earned : 74918.1
Year 11
Total Amount Invested : 66000.0, Total amount earned : 84154.82
Year 12
Total Amount Invested : 72000.0, Total amount earned : 93761.01
Year 13
Total Amount Invested : 78000.0, Total amount earned : 103751.445
Year 14
Total Amount Invested : 84000.0, Total amount earned : 114141.5
Year 15
Total Amount Invested : 90000.0, Total amount earned : 124947.16
Year 16
Total Amount Invested : 96000.0, Total amount earned : 136185.03
Year 17
Total Amount Invested : 102000.0, Total amount earned : 147872.42
Year 18
Total Amount Invested : 108000.0, Total amount earned : 160027.31
Year 19
Total Amount Invested : 114000.0, Total amount earned : 172668.4
Year 20
Total Amount Invested : 120000.0, Total amount earned : 185815.14
Year 21
Total Amount Invested : 126000.0, Total amount earned : 199487.73
Year 22
Total Amount Invested : 132000.0, Total amount earned : 213707.23
Year 23
Total Amount Invested : 138000.0, Total amount earned : 228495.52
Year 24
Total Amount Invested : 144000.0, Total amount earned : 243875.33
Year 25
Total Amount Invested : 150000.0, Total amount earned : 259870.33
Year 26
Total Amount Invested : 156000.0, Total amount earned : 276505.12
Year 27
Total Amount Invested : 162000.0, Total amount earned : 293805.3
Year 28
Total Amount Invested : 168000.0, Total amount earned : 311797.5
Year 29
Total Amount Invested : 174000.0, Total amount earned : 330509.38
Year 30
Total Amount Invested : 180000.0, Total amount earned : 349969.75
Year 31
Total Amount Invested : 186000.0, Total amount earned : 370208.53
Year 32
Total Amount Invested : 192000.0, Total amount earned : 391256.84
Year 33
Total Amount Invested : 198000.0, Total amount earned : 413147.1
Year 34
Total Amount Invested : 204000.0, Total amount earned : 435912.97
Year 35
Total Amount Invested : 210000.0, Total amount earned : 459589.47
Year 36
Total Amount Invested : 216000.0, Total amount earned : 484213.03
Year 37
Total Amount Invested : 222000.0, Total amount earned : 509821.53
Year 38
Total Amount Invested : 228000.0, Total amount earned : 536454.4
Year 39
Total Amount Invested : 234000.0, Total amount earned : 564152.5
Year 40
Total Amount Invested : 240000.0, Total amount earned : 592958.56
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