How do you calculate compound interest in Python?

What is Compound Interest ?

Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Compound Interest formula:

Formula to calculate compound interest annually is given by: 

A = P(1 + R/100) t 

Compound Interest = A – P 

Where, 
A is amount 
P is principle amount 
R is the rate 
T is the time in years

Code :

def CompoundInterest(principle, rate, time):

    Amount = principle * pow(1+rate/100, time)

    CI = Amount - principle

    print("Compound Interest = ",CI)

p = float(input("Enter Principle Amount : "))

r = float(input("Enter Rate of Interest per annum : "))

t = float(input("Time in years : "))

CompoundInterest(p, r, t)

Output :

Enter Principle Amount : 11000

Enter Rate of Interest per annum : 11.25

Time in years : 6

Compound Interest =  9854.164888652806

Explanation :

We have to define a function which takes 3 arguments principle, rate and time. Now using the formula calculate compound interest and print the output