Payment = months Principal [rate ((1 + rate)mo [(rate + 1)months – 1] - For the formula to compute monthly payment, see Listing 2.9, ComputeLoan.java. (Financial application: loan amortization schedule) The monthly payment for a given loan pays the principal and the interest. The monthly interest is computed by multiplying the monthly interest rate and the balance (the remaining princi- pal). The principal paid for the month is therefore the monthly payment m the monthly interest. Write a program that lets the user enter the loan amount. minus

C++ Programming: From Problem Analysis to Program Design
8th Edition
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Author:D. S. Malik
Publisher:D. S. Malik
Chapter5: Control Structures Ii (repetition)
Section: Chapter Questions
Problem 20PE: When you borrow money to buy a house, a car, or for some other purpose, you repay the loan by making...
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Payment
=
Principal [rate ((1 + rate)months)]
[(rate + 1)months - 1]
For the formula to compute monthly payment, see Listing 2.9, ComputeLoan.java.
(Financial application: loan amortization schedule) The monthly payment for a
given loan pays the principal and the interest. The monthly interest is computed
by multiplying the monthly interest rate and the balance (the remaining princi-
pal). The principal paid for the month is therefore the monthly payment minus
the monthly interest. Write a program that lets the user enter the loan amount
Transcribed Image Text:Payment = Principal [rate ((1 + rate)months)] [(rate + 1)months - 1] For the formula to compute monthly payment, see Listing 2.9, ComputeLoan.java. (Financial application: loan amortization schedule) The monthly payment for a given loan pays the principal and the interest. The monthly interest is computed by multiplying the monthly interest rate and the balance (the remaining princi- pal). The principal paid for the month is therefore the monthly payment minus the monthly interest. Write a program that lets the user enter the loan amount
Program
number of years, and interest rate and displays the amortization schedule for the
loan. Here is a sample run:
Loan Amount: 10000 Enter
Number of Years: 1 Enter
Annual Interest Rate: 7
Monthly Payment: 865.26
Total Payment: 10383.21
Payment# Interest
58.33
53.62
1
2
11
12
}
10.0
5.01
Enter
Principal
806.93
811.64
855.26
860.25
Balance
9193.07
8381.43
860.27
0.01
Note
The balance after the last payment may not be zero. If so, the last payment should be
the normal monthly payment plus the final balance.
Hint: Write a loop to display the table. Since the monthly payment is the
same for each month, it should be computed before the loop. The balance
is initially the loan amount. For each iteration in the loop, compute the
interest and principal, and update the balance. The loop may look like this:
for (i = 1; i <= numberOfYears * 12; i++) {
interest = monthlyInterestRate * balance;
principal = monthly Payment - interest;
balance = balance - principal;
System.out.println(i + "\t\t" + interest
+ "\t\t" + principal + "\t\t" + balance);
Transcribed Image Text:Program number of years, and interest rate and displays the amortization schedule for the loan. Here is a sample run: Loan Amount: 10000 Enter Number of Years: 1 Enter Annual Interest Rate: 7 Monthly Payment: 865.26 Total Payment: 10383.21 Payment# Interest 58.33 53.62 1 2 11 12 } 10.0 5.01 Enter Principal 806.93 811.64 855.26 860.25 Balance 9193.07 8381.43 860.27 0.01 Note The balance after the last payment may not be zero. If so, the last payment should be the normal monthly payment plus the final balance. Hint: Write a loop to display the table. Since the monthly payment is the same for each month, it should be computed before the loop. The balance is initially the loan amount. For each iteration in the loop, compute the interest and principal, and update the balance. The loop may look like this: for (i = 1; i <= numberOfYears * 12; i++) { interest = monthlyInterestRate * balance; principal = monthly Payment - interest; balance = balance - principal; System.out.println(i + "\t\t" + interest + "\t\t" + principal + "\t\t" + balance);
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