MATLAB Answers

Compound interest in a for loop

47 views (last 30 days)
Petch Anuwutthinawin
Petch Anuwutthinawin on 12 Jun 2021
Edited: Petch Anuwutthinawin on 12 Jun 2021
I need to create a loop to calculate the compound interest of a Roth IRA each year. The function has to input p(principal amount), c(yearly contribution), r(return rate), and n(number of years). It has to output a v vector of values in the account the first day of each year. I have written a loop that should calculate the yearly compound interest through the y=equation, and then add it to the vector v. However this loop only prints out the initial values p. How do I make this create a vector of compount interests. I also have to plot the vector that comes out versus the year, but I have no idea what syntax to use to do that.
v=p;
for N=2:length(n)
y=(v*(1+r).^N+c)
v=v+y(N);
end

Answers (1)

Sulaymon Eshkabilov
Sulaymon Eshkabilov on 12 Jun 2021
Edited: Sulaymon Eshkabilov on 12 Jun 2021
v=p;
for N=2:length(n)
y(N)=(v(N-1)*(1+r).^N+c)
v(N)=v(N-1)+y(N); % specify the index and you will get all the values
end
  3 Comments
Petch Anuwutthinawin
Petch Anuwutthinawin on 12 Jun 2021
all the code does is print out the input values of p, and not a vector and not the correct calculations

Sign in to comment.

Tags

Community Treasure Hunt

Find the treasures in MATLAB Central and discover how the community can help you!

Start Hunting!