Question

Use the switch structure to write a MATLAB program to compute the amount of money that accumulates in a savings account in one year. The program should accept the following input: the initial amount of money deposited in the account; the frequency of interest compounding (monthly, quarterly, semiannually, or annually); and the interest rate. Run your program for a $10000 initial deposit for each case; use a 4 percent interest rate. Compare the amounts of money that accumulate for each case.

Answer 1

The given Matlab code should work well for you. Let me know if you have any doubt regarding the code.

The formula used is a basic compound interest formula for one year.

function amount = CompundInteres(initial, rate, frequency)
    switch frequency
        case 'monthly'
            amount = initial*(1 + rate/1200)^12;
        case 'quarterly'
            amount = initial*(1 + rate/400)^4;
        case 'semiannually'
            amount = initial*(1 + rate/200)^2;
        case 'annually'
            amount = initial*(1+rate/100);
        otherwise
            fprintf("Not a valid frequency");
            return;
    end
  
end

CompundInteres(10000, 4, 'monthly') %10407
CompundInteres(10000, 4, 'quarterly') %10406
CompundInteres(10000, 4, 'semiannually') %10404
CompundInteres(10000, 4, 'annually') %10400