Lending institutions use the following formula to calculate the size of monthly payment necessary to repay a loan:
Ai( 1 + i ) ^ n
MP = ----------------------
(( 1 + i ) ^ n) - 1
Where MP = monthly payment
i = monthly interest rate
n = duration of loan in months
A = amount of loan
Assume that Cathy Consumer wishes to purchase a new car but cannot decide between dealers because of difference in price, duration of loan and interest rates being offered. She has asked you to write a program to compute monthly payments for her. She wants to be able to input the amount of the loan and the duration from the keyboard and print a table showing monthly payments for interest rates from 0% to 6% in increments of 1/2%. Cathy would also like to know how much the total of the payments add up too and the total interest that would be paid over the duration of the loan for each rate of interest. Lastly Cathy decided that the program should ask if an amortization payment table should be computed for a specific loan amount at a specific interest rate over a specific duration in months. When computing the amortization table the program should report for the end of each year (12 month period) the total of payments, total of interest paid, total paid on the principle and the ending balance on the loan for that year. The information needed for amortization is as follows:
A = amount of loan (Balance of loan)
i = monthly interest rate (not yearly rate)
MP = monthly payment as computed above
n = duration of the loan in months
Compute interest payment for each period (month)
intpay = A (Balance of loan) * i
payment applied to principal
AP = MP - intpay
(new Balance) = (previous balance) - AP
Create a Menu for your program.
This program is to demonstrate the use of the Perform statements.
Test your program on the following data:
first. loan amount = $16,500
duration = 3 years
amortize
loan amount = $16,500
duration = 3 years
interest = 2.9%
second loan amount = $7,900
duration = 5 years
amortize
loan amount = $7,900
duration = 5 years
interest = 6.9%
third
loan amount = $39,900
duration = 4 years
amortize
none
Example of an amortization table for a loan of $12,000 with a interest rate of 7%.
Period Monthly Interest Applied to New
Payment Paid Principal Balance
1 370.53 70.00 300.53 11,699.47
2 370.53 68.25 302.28 11,379.20
3 370.53 66.48 304.04 11,093.16
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