You are working as a computer programmer for a mortgage company that provides loans to consumers for residential housing. Your task is to create an application to be used by the loan officers of the company when presenting loan options to its customers. The application will be a mortgage calculator that determines a monthly payment for loans and produces an amortization schedule for the life of the loan. Loan Application - Amortization Schedule Principal: Life of Loan (10, 15 or 30 years): Annual interest rate: Monthly payment: 100000 The company offers 10-, 15-, and 30-year fixed loans. 15 Inputs 4.5% The program should initially prompt the user (the loan officer) for the principal of the loan (i.e. the amount that is being borrowed). 764.99 It should then ask him or her to enter an annual interest rate for the loan. Payment Amount Interest Principal Balance 100000.00 The final input should be the number of years that the loan will be outstanding. Because the company only offers three different terms (10-, 15-, and 30-year loans), the program should ensure that no other terms are entered. 1 764.99 375.00 389.99 99610.01 764.99 373.54 391.46 99218.55 3 764.99 372.07 392.92 98825.63 Payment Calculator ... ... ... ... ... 178 764.99 8.54 756.45 1521.42 The formula to calculate the monthly payment for a fixed interest rate loan is as follows: 179 764.99 5.71 759.29 762.14 A=P[(1+1n)/[(1+r)'n-1] where 180 764.99 2.86 762.14 e.00 A = payment Amount per period Press any key to continue . . . P- initial Principal (loan amount)
You are working as a computer programmer for a mortgage company that provides loans to consumers for residential housing. Your task is to create an application to be used by the loan officers of the company when presenting loan options to its customers. The application will be a mortgage calculator that determines a monthly payment for loans and produces an amortization schedule for the life of the loan. Loan Application - Amortization Schedule Principal: Life of Loan (10, 15 or 30 years): Annual interest rate: Monthly payment: 100000 The company offers 10-, 15-, and 30-year fixed loans. 15 Inputs 4.5% The program should initially prompt the user (the loan officer) for the principal of the loan (i.e. the amount that is being borrowed). 764.99 It should then ask him or her to enter an annual interest rate for the loan. Payment Amount Interest Principal Balance 100000.00 The final input should be the number of years that the loan will be outstanding. Because the company only offers three different terms (10-, 15-, and 30-year loans), the program should ensure that no other terms are entered. 1 764.99 375.00 389.99 99610.01 764.99 373.54 391.46 99218.55 3 764.99 372.07 392.92 98825.63 Payment Calculator ... ... ... ... ... 178 764.99 8.54 756.45 1521.42 The formula to calculate the monthly payment for a fixed interest rate loan is as follows: 179 764.99 5.71 759.29 762.14 A=P[(1+1n)/[(1+r)'n-1] where 180 764.99 2.86 762.14 e.00 A = payment Amount per period Press any key to continue . . . P- initial Principal (loan amount)
Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
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Question
please help
![INSTRUCTIONS
You are working as a computer programmer for a mortgage company that provides loans to
consumers for residential housing. Your task is to create an application to be used by the loan
officers of the company when presenting loan options to its customers. The application will be a
mortgage calculator that determines a monthly payment for loans and produces an amortization
schedule for the life of the loan.
Loan Application - Amortization Schedule
Principal:
Life of Loan (10, 15 or 30 years):
Annual interest rate:
Monthly payment:
100000
The company offers 10-, 15-, and 30-year fixed loans.
15
Inputs
4.5%
The program should initially prompt the user (the loan officer) for the principal of the loan (i.e.
764.99
the amount that is being borrowed).
It should then ask him or her to enter an annual interest rate for the loan.
Payment
Amount Interest Principal
Balance
100000.00
The final input should be the number of years that the loan will be outstanding. Because the
company only offers three different terms (10-, 15-, and 30-year loans), the program should
ensure that no other terms are entered.
1
764.99
375.00
389.99
99610.01
2
764.99
373.54
391.46
99218.55
3
764.99
372.07
392.92
98825.63
Payment Calculator
...
...
...
...
...
178
764.99
8.54
756.45
1521.42
The formula to calculate the monthly payment for a fixed interest rate loan is as follows:
179
764.99
5.71
759.29
762.14
A=P[(1+1Yn]/[(1+r)^n-1]
where
180
764.99
2.86
762.14
e.00
A= payment Amount per period
Press any key to continue
...
P= initial Principal (loan amount)
7= interest rate per period
n= total number of payments or periods
Example: What would the monthly payment be on a 15-year, $100,000 loan with a 4.50%
annual interest rate?
P = $100,000
r= 4.50% per year / 12 months = 0.375% (or 0.00375) per period
n= 15 years * 12 months = 180 total periods
A = 100,000 * (.00375 * (1+ .00375) 8(1+.00375)180 – 1)
Using these numbers in the formula above yields a monthly payment of $764.99.
This is the output:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F917ba0ca-c311-4497-ab5e-23b52ffbd081%2Ff0e54093-d0ee-4ed2-9c19-363184c1d36b%2Ff26tm76_processed.png&w=3840&q=75)
Transcribed Image Text:INSTRUCTIONS
You are working as a computer programmer for a mortgage company that provides loans to
consumers for residential housing. Your task is to create an application to be used by the loan
officers of the company when presenting loan options to its customers. The application will be a
mortgage calculator that determines a monthly payment for loans and produces an amortization
schedule for the life of the loan.
Loan Application - Amortization Schedule
Principal:
Life of Loan (10, 15 or 30 years):
Annual interest rate:
Monthly payment:
100000
The company offers 10-, 15-, and 30-year fixed loans.
15
Inputs
4.5%
The program should initially prompt the user (the loan officer) for the principal of the loan (i.e.
764.99
the amount that is being borrowed).
It should then ask him or her to enter an annual interest rate for the loan.
Payment
Amount Interest Principal
Balance
100000.00
The final input should be the number of years that the loan will be outstanding. Because the
company only offers three different terms (10-, 15-, and 30-year loans), the program should
ensure that no other terms are entered.
1
764.99
375.00
389.99
99610.01
2
764.99
373.54
391.46
99218.55
3
764.99
372.07
392.92
98825.63
Payment Calculator
...
...
...
...
...
178
764.99
8.54
756.45
1521.42
The formula to calculate the monthly payment for a fixed interest rate loan is as follows:
179
764.99
5.71
759.29
762.14
A=P[(1+1Yn]/[(1+r)^n-1]
where
180
764.99
2.86
762.14
e.00
A= payment Amount per period
Press any key to continue
...
P= initial Principal (loan amount)
7= interest rate per period
n= total number of payments or periods
Example: What would the monthly payment be on a 15-year, $100,000 loan with a 4.50%
annual interest rate?
P = $100,000
r= 4.50% per year / 12 months = 0.375% (or 0.00375) per period
n= 15 years * 12 months = 180 total periods
A = 100,000 * (.00375 * (1+ .00375) 8(1+.00375)180 – 1)
Using these numbers in the formula above yields a monthly payment of $764.99.
This is the output:
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