do loop

[Ravikumarpa4]

need solution for below question by using do loop

each year an employee invests 5000 in an account determine the value of account after 3 year based on constant intrest rate of 4.5

[RW9]

Solution is to use SAS code.  Realy what do you expect?  You have provided nothing, where is the test data (in the form of a datastep), where is the example output.  What code have you tried etc.

[art297]

There's a function for that: MORT (see: http://support.sas.com/documentation/cdl/en/lrdict/64316/HTML/default/viewer.htm#a000245917.htm)

However, to use it, you'll have to specify whether the interest is compounded  daily, monthly or whatever.

Art, CEO, AnalystFinder.com

[Ksharp · Accepted solution]

data _null_;
cum=0;
do n=0 to 2;
 cum=cum+1.045**n;
 
 total=5000*cum;
 year=n+1;
 put year= total= ;
end;
run;

[Ravikumarpa4]

Hi

thanks for your code. i got the what i'm expecting but need one clarification on how you deceided  'cum=cum+1.045**n;'

[Ksharp]

It is equivalent with:

1

1+1.045

1+1.045+1.045**2

[Yavuz]

Hi, your question is about to "compound interest calculation" which is calculated as c=c+(1+r)^n classical formula.
C is capital, r is interest rate, n is period.
Thanks for Ksharp's solution.

[Ravikumarpa4]

ok thanks but if want calcualte on simple interest then it will be 'cum=cum+1.045;' right?

[Yavuz]

Yes, but
If your interest rate (0.045) for one month and want to calculate simple annual interest multiply by 12
Cum=cum+(1.045)*12