Create a Java Program using the scenario below. You made a $6,000 purchase for a car using an approved Visa credit card. The annual interest rate for the card is eighteen percent. The minimum monthly payment rate is two percent. How much is the remaining balance after a year? Equations for the program. 1: Minimum monthly payment (mmp) = mmp x balance 2: Interest paid = annual interest rate divided by 12 months times balance. 3: Principal paid = mmp minus interest paid(IP) 4: Remaining balance = balance minus principal paid.
Create a Java Program using the scenario below.
You made a $6,000 purchase for a car using an approved Visa credit card. The annual interest rate for the card is eighteen percent. The minimum monthly payment rate is two percent. How much is the remaining balance after a year?
Equations for the program.
1: Minimum monthly payment (mmp) = mmp x balance
2: Interest paid = annual interest rate divided by 12 months times balance.
3: Principal paid = mmp minus interest paid(IP)
4: Remaining balance = balance minus principal paid.
Compute the first month of the MMP by taking two percent of the balance like below.
MMP = .02 times %6000 = $120
Then compute how much will apply to interest payment, and how much can pay for the principal amount. The annual interest rate divided by 12 to get monthly rate
IP = .18 divided bt 12.0 times $6000 = 90
Principal paid = 120 minus 90 = 30
Remaining balance will be principal paid minus the balance at the start of the month.(6000 minus 30 = 5970).
Finally, calculate the next eleven months by repeating the steps above. After twelve months(a year) show amount paid and outstanding balance. How many years will it take to pay off the debt.
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