Compound Interest with Streamlit & Python
We can often hear investors and traders say the key for financial success is compound interest. I personally interpret it as reinvesting the profits. Here is what Ivestopedia says about compound interest:
Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Thought to have originated in 17th-century Italy, compound interest can be thought of as "interest on interest," and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.
The image above demonstrates the formula for calculating compound interest. Recently, a friend of mine jokingly asked if I could write a python code to display compound interest for staked assets. Even it is for fun, I thought why not? As a quick app making library I chose to use Streemlit and wrote up some code to display growth of the principal amount based on the interest rate and compounding interest every second. I believe normally compounding would work every month. I am not really sure how compounding works in defi. In any case, I just used every second. Below is the code, try it yourself.
import streamlit as st
import time
amount = st.sidebar.text_input('Amount', '1000.00')
interest_rate = st.sidebar.text_input('Interest Rate', '10.00')
start = st.sidebar.button('Start')
if __name__ == '__main__':
'''
# Compound Interest!
'''
if start:
st.markdown("""
<style>
.big-font {
color:green;
font-size:80px !important;
}
</style>
""", unsafe_allow_html=True)
A = 0
P = float(amount)
r = float(interest_rate)
n = 12 * 365 * 24 * 60 * 60
t = 1
A = P * (1 + (r / 100) / n) ** (n*t)
b = st.empty()
for i in range(n):
I = P * (r / 100) / n
P = P + I
P = round(P, 8)
txt = str(P)
b.markdown('<p class="big-font">{}</p>'.format(txt), unsafe_allow_html=True)
time.sleep(1)
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https://twitter.com/geekjen/status/1353602342935875584
https://twitter.com/Bhattg18/status/1353639704088875008
Thank you @geekgirl for coding for calculating compound interest
I taught her everything she knows.
True!