gic_calculator.interest_calculator

Module Contents

Functions

interest_calc(principal, term_length[, gic_rate])

GIC interest accrual calculator
gic_calculator.interest_calculator.interest_calc(principal, term_length, gic_rate=None)[source]

GIC interest accrual calculator

Calculator to determine the interest to be accrued after investment in a GIC (Guarenteed Investment Certificate) for a user-specifed term, principal amount and GIC rate. The interest rate term is optional and will be set to default values for the term length, in the case it is not specified by the user.

This calculator can be used to evaluate the expected interest accrual after a specified term length, principal amount, and GIC rate to aid in investment planning / calculation of expected returns.

Parameters:

  • principal (int) – The principal (initial amount) to be invested in the GIC account.

  • term_length (int) – The term length (duration) of the investment. To be one of the following standard options: 90 days, 180 days, 270 days, 1 year, 1.5 years, 2 years, 3 years, 5 years. Enter the input as either 90, 180, 270, 1, 1.5, 2, 3, or 5.

  • gic_rate (float, optional) – The GIC rate for the term length and investment type (fixed / cashable). This information can be found on your bank’s website. If a value is not provided by the user, default values will be used based on the specifed term length, as follows (GIC rates have units of percent): 90 days = 1.40, 180 days = 3.90, 270 days = 5.10, 1 year = 4.90, 1.5 years = 4.80, 2 years = 4.10, 3 years = 4.00, 5 years = 3.75.

Returns:

  • gic_rate (float) – Outputs the gic_rate utilized in the interest accrual calculation as a numeric value.

  • interest_return (float) – Outputs the total interest accrued after the investment term as a number in the same currency as the principal amount specified by the user.

Examples

>>> interest_calc(5000, 180, 3.90)
1.4, 96.16