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Question
Assume you want to deposit a certain amount of money into a saving account, and then leave it alone to draw interest for next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you require to deposit today to make that happen? You can use following formula, which is known as the present value formula, to find out-
P= F/(1/+r)^n
The terms in the formula are-
P is present value, or the amount that you want to deposit today. F is the future value that you want in account. (In this case, F is $10,000.)r is the annual interest rate (expressed in decimal form) n is number of years that you plan to let the money sit in the account.
Write down a program that has a function named presentValue that performs this calculation. The function has to accept the future value, annual interest rate, and number of years as arguments. It should return the present value that is the amount that you need to deposit today. Show the function in a program that lets user experiment with different values for the formula's terms.
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