how to implement compound interest formula

Question

I need to have this formula work in swift 10000 * 1+(7/100) ^ 5

Here's my current code but the pow function isn't working as I need it

let yearly = 5.00
let initial = 10000.00
let interestRate = 7.00
let result = pow(initial * (1+(interestRate/100)),yearly)

Answer 1

I need to have this formula work in swift 10000 * 1+(7/100) ^ 5

That is not the correct formula for compound interest. You have left out a set of parentheses which change the meaning of the formula. You have also not translated your formula to Swift correctly, but the errors in formula and the errors in your translation did not cancel out.

The correct formula is p × (1 + r)ⁿ, where p is the principal, r is the interest rate per period, and n is the number of periods. In your example, p = 10000, r = 7/100, and n = 5. So the correct formula for your example is 10000 × (1 + 7/100)⁵. Exponentiation has higher precedence than multiplication, and division has higher precedence than addition. Here is how to translate the formula to Swift with the proper order of operations:

let principal = 10000.0
let ratePercent = 7.0
let periods = 5.0
let result = principal * pow(1 + ratePercent / 100, periods)