Scribd Logo
Upload

Welcome to Scribd!

  • 9 views

    Compounded Interest Rate With Python

    Uploaded by

    Gasimovsky
    Famous question in social media: What supposed to be an interest rate to make 1USD savings per day for 365 days to become 30000

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Compounded Interest Rate With Python

    Uploaded by

    Gasimovsky
    9 views2 pages
    Famous question in social media: What supposed to be an interest rate to make 1USD savings per day for 365 days to become 30000

    Original Title

    Compounded Interest rate with Python

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Famous question in social media: What supposed to be an interest rate to make 1USD savings per day for 365 days to become 30000

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    9 views2 pages

    Compounded Interest Rate With Python

    Uploaded by

    Gasimovsky
    Famous question in social media: What supposed to be an interest rate to make 1USD savings per day for 365 days to become 30000

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    What supposed to be an interest rate to make 1usd savings per day for 365 days to become 30000

    To find the interest rate that would make daily savings of $1 grow to $30,000 over 365 days, we
    can use the formula for the future value of a series of equal payments (an annuity), with interest
    compounded daily.

    The future value FVFVFV of an annuity can be calculated using the formula:
    FV=P×(1+r)n−1rFV = P \times \frac{(1 + r)^n - 1}{r}FV=P×r(1+r)n−1

    Where:

     PPP is the amount saved daily ($1)


     rrr is the daily interest rate
     nnn is the total number of payments (365)
     FVFVFV is the future value ($30,000)

    Given FV=30,000FV = 30,000FV=30,000, P=1P = 1P=1, and n=365n = 365n=365, we need to


    solve for rrr.

    Rearranging the formula to solve for rrr: 30,000=1×(1+r)365−1r30,000 = 1 \times \frac{(1 +


    r)^{365} - 1}{r}30,000=1×r(1+r)365−1

    This equation is complex to solve algebraically, so we'll use numerical methods to find rrr. Let's
    calculate this using Python.

    To achieve a future value of $30,000 from daily savings of $1 over 365 days, the required annual
    interest rate would be approximately 51833.51%. This is an extraordinarily high interest rate and
    is not feasible in any standard financial scenario. It suggests that reaching $30,000 from such
    small daily savings in such a short period is unrealistic under normal financial conditions.

    from scipy.optimize import fsolve

    # Define the function based on the formula

    def future_value_daily_savings(r, P, n, FV):

    return P * ((1 + r)**n - 1) / r - FV

    # Constants

    P=1 # Daily savings amount in USD


    n = 365 # Total number of days

    FV = 30000 # Future value in USD

    # Initial guess for the interest rate

    initial_guess = 0.1

    # Solving for the daily interest rate

    daily_interest_rate, = fsolve(future_value_daily_savings, initial_guess, args=(P, n, FV))

    # Converting the daily interest rate to an annual interest rate

    annual_interest_rate = (1 + daily_interest_rate) ** 365 - 1

    annual_interest_rate

    You might also like