A person invests $1,000 in a savings account yielding 5% interest. Assuming that all

the interest is left on deposit, calculate and print the amount of money in the account

at the end of each year for 10 years. Use the following formula to determine the

amounts:

a = p (1 + r)n

where

p is the original amount invested (i.e., the principal)

r is the annual interest rate (e.g., use 0.05 for 5%)

n is the number of years

a is the amount on deposit at the end of the nth year

## Compound-interest calculations in Java

```
// Fig. 5.6: Interest.java
// Compound-interest calculations with for.
public class Interest
{
public static void main(String[] args)
{
double amount; // amount on deposit at end of each year
double principal = 1000.0; // initial amount before interest
double rate = 0.05; // interest rate
// display headers
System.out.printf("%s %n", "Year", "Amount on deposit");
// calculate amount on deposit for each of ten years
for (int year = 1; year <= 10; ++year)
{
// calculate new amount for specified year
amount = principal * Math.pow(1.0 + rate, year);
// display the year and the amount
System.out.printf("%4d%,20.2f%n", year, amount);
}
}
} // end class Interest
```

**Output of Program**

Year Amount on deposit

1 1,050.00

2 1,102.50

3 1,157.63

4 1,215.51

5 1,276.28

6 1,340.10

7 1,407.10

8 1,477.46

9 1,551.33

10 1,628.89