Programming Write a Method Named Invest That Computes the Interest Earned

question 5

Essay

Programming
Write a method named invest that computes the interest earned on a financial investment. Once per year, the bank pays interest to the investor at a given fixed rate. As the investment earns interest, that interest is added to the investment and therefore the interest begins earning interest of its own ("compounding").
Your method should accept three parameters: the initial amount of the investment in dollars (as a real number such as 1500.0 for $1,500.00), the yearly interest rate (as a real number such as 3.5 for 3.5% interest) and the number of years for which to invest (as an integer such as 6 for 6 years).
Your method should print the value of the investment after each year, as well as the total amount of interest earned over all years. For example, an investment of $100.00 at 10% interest for 5 years would lead to this call:
invest(100.00, 10.0, 5); // $100.00 at 10% interest for 5 years
The call would produce the following console output. Dollar amounts print with 2 digits after the decimal.
After year 1: $110.00
After year 2: $121.00
After year 3: $133.10
After year 4: $146.41
After year 5: $161.05
Total interest earned: $61.05
Notice that we are not simply adding 10% of $100.00 (or $10.00) each year; that would lead to $50 of total interest earned. The first year adds 10% of $100.00, but the second year adds 10% of $110.00, or $11.00, leading to a total of $121.00. The third year adds 10% of $121.00, or $12.10, leading to a total of $133.10. The interest is cumulative.
You may assume that all parameter values passed are non-negative.

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Definitions:

Payment

Payment refers to the transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Outstanding Balance

The amount of money that is still owed or due on a financial account or loan.

Invoice

A document issued by a seller to a buyer that lists goods or services provided along with their costs, signifying an obligation to pay.

Payment

The act of giving money in exchange for goods, services, or to fulfill an obligation.