Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN: 9780133594140
Author: James Kurose, Keith Ross
Publisher: PEARSON
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This is to confirm my work, the wording throws me off a bit in understanding how interest works (i.e., whats the purpose of "interest to be paid" , why the deduction, #6, does it need to be displayed on the console, etc etc i don't understand this), I want to make sure I'm doing this right. Thanks.
Suppose a loan has a face value of $1,000, the annual interest rate is 15%, and the duration is 18 months.
- The interest-to-be-paid is computed by multiplying the face value of $1,000 by 0.15, yielding $150.
- That figure is then multiplied by the loan period of 1.5 years to yield $225 as the total interest owed.
- That amount is immediately deducted from the face value, leaving the consumer with only $775 (i.e. $1000 - $225).
- Repayment is made in equal monthly installments based on the face value (i.e. $1000 in this case).
- So the monthly loan payment will be $1,000 divided by 18, which is $55.56.
- This method of calculation may be alright if the client needs $775, but the calculation is a bit more complicated if the client needs $1,000.
- The discounted installment loan calculator will take two inputs:
- the amount the client needs to receive and
- the interest rate.
==
- The program should consider the duration of the loan being 30 months (i.e. a constant value), then calculate the face value required in order for the client to receive the amount needed.
- It should also calculate the monthly payment.
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