Question

Retirement Age Calculator


Build a function retirement_age(PMT, i, FV, start_age) that calculates the (whole) age at which your customer can retire, if they:


•invest an amount, PMT at the END of every YEAR (with the first payment made exactly one year from now),

•at an interest rate of i% per year, compounded annually,

•they require an amount of AT LEAST FV in order to be able to afford retirement and

•they just turned start_age years old.

Solve this using python.

Answer 1

Answer:

# Importing required mathematical library

import math

def retirement_age(PMT,i,FV,start_age):

   # Rate of intereset to be converted from percentage to number

   roi = i*0.01

   # Interim calculations to be used in the compound interest formula  

   val1 = FV/PMT

   val2 = 1 + roi

   #Number of years as per the compound interest formula

   no_of_year = math.log10(val1)/math.log10(val2)

   return no_of_year

PMT = float(input('Please enter the principle amount: '))

i = float(input('Please enter the rate of interest: '))

FV = float(input('Please enter the desired final amount: '))

start_age = int(input('Please enter your age: '))

ret_age = round(retirement_age(PMT,i,FV,start_age) + start_age)

print(f'You can retire at the age of {ret_age}')

Sample Output:

Please enter the principle amount: 1000

Please enter the rate of interest: 10

Please enter the desired final amount: 100000

Please enter your age: 30

You can retire at the age of 78