Question

Create the Pseudocode logic for a program that helps a user to calculate one year of simple interest.

• Create an appropriately named method to:
  1. input the amount the user is investing (principal)
  2. calculate one year of interest at a rate of 7% (the formula is quite simple, interest is the amount invested times 0.07)
  3. output the interest
• Be aware that any variables required by the method must be declared in the body of the method, not after immediately start like we have been doing up to now.
• Call the method in the main code body (the code between start and stop).

Answer 1

Pseudo Code

function calculateSimpleInterest(Argument principalAmount){

declare interestRate = 0.07

declare simpleInterest = principalAmount * interestRate

return simpleInterest

}

In the main function{

prompt "Enter principal amount"

take the principal amount input

pass the principle amount to calculateSimpleInterest function and print the result

}