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   "cells": [
    {
     "cell_type": "heading",
     "level": 1,
     "metadata": {},
     "source": [
      "8 Discrete numeric functions and generating functions"
     ]
    },
    {
     "cell_type": "heading",
     "level": 2,
     "metadata": {},
     "source": [
      "Example 01:Page 368"
     ]
    },
    {
     "cell_type": "code",
     "collapsed": false,
     "input": [
      "print \"Suppose we deposit $100 in a savings account at an interest rate of 7 percent per year, compounded annually\"\n",
      "principal=100\n",
      "rate_of_interest=7\n",
      "def amount(r): # r represents the number of years\n",
      "    a=principal*pow(1.07,r) # Since the formula for compound interest is 100*(1+(rate_of_interest/100)) and rate_of_interest here is 7\n",
      "    return a\n",
      "print \"At the end of the first year, the total amount in the account is $\",amount(1) #Since we calculate the amount after 1 year, here r is 1\n",
      "print \"At the end of the second year, the total amount in the account is $\",amount(2) #Since we calculate the amount after 2 years, here r is 2\n",
      "print \"At the end of the third year, the total amount in the account is $\",round(amount(3),2) #Since we calculate the amount after 3 years, here r is 3\n",
      "\n"
     ],
     "language": "python",
     "metadata": {},
     "outputs": [
      {
       "output_type": "stream",
       "stream": "stdout",
       "text": [
        "Suppose we deposit $100 in a savings account at an interest rate of 7 percent per year, compounded annually\n",
        "At the end of the first year, the total amount in the account is $ 107.0\n",
        "At the end of the second year, the total amount in the account is $ 114.49\n",
        "At the end of the third year, the total amount in the account is $ 122.5\n"
       ]
      }
     ],
     "prompt_number": 1
    }
   ],
   "metadata": {}
  }
 ]
}