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41 changes: 39 additions & 2 deletions financial/interest.py
Original file line number Diff line number Diff line change
Expand Up @@ -4,7 +4,7 @@


def simple_interest(
principal: float, daily_interest_rate: float, days_between_payments: int
principal: float, daily_interest_rate: float, days_between_payments: float
) -> float:
"""
>>> simple_interest(18000.0, 0.06, 3)
Expand Down Expand Up @@ -42,7 +42,7 @@ def simple_interest(
def compound_interest(
principal: float,
nominal_annual_interest_rate_percentage: float,
number_of_compounding_periods: int,
number_of_compounding_periods: float,
) -> float:
"""
>>> compound_interest(10000.0, 0.05, 3)
Expand Down Expand Up @@ -77,6 +77,43 @@ def compound_interest(
)


def apr_interest(
principal: float,
nominal_annual_percentage_rate: float,
number_of_years: float,
) -> float:
"""
>>> apr_interest(10000.0, 0.05, 3)
1618.223072263547
>>> apr_interest(10000.0, 0.05, 1)
512.6749646744732
>>> apr_interest(0.5, 0.05, 3)
0.08091115361317736
>>> apr_interest(10000.0, 0.06, -4)
Traceback (most recent call last):
...
ValueError: number_of_years must be > 0
>>> apr_interest(10000.0, -3.5, 3.0)
Traceback (most recent call last):
...
ValueError: nominal_annual_percentage_rate must be >= 0
>>> apr_interest(-5500.0, 0.01, 5)
Traceback (most recent call last):
...
ValueError: principal must be > 0
"""
if number_of_years <= 0:
raise ValueError("number_of_years must be > 0")
if nominal_annual_percentage_rate < 0:
raise ValueError("nominal_annual_percentage_rate must be >= 0")
if principal <= 0:
raise ValueError("principal must be > 0")

return compound_interest(
principal, nominal_annual_percentage_rate / 365, number_of_years * 365
)


if __name__ == "__main__":
import doctest

Expand Down