Chapter 5, Problem 5.22PE

For the formula to compute monthly payment, see Listing 2.9, ComputeLoan.java.

**5.22 (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 principal). 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, number of years, and interest rate then displays the amortization schedule for the loan. Here is a sample run:

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 as follows:

for (i = 1 ; i <= numberOfYears * 12 ; i++) {

interest = monthlyinterestRate * balance;

principal = monthlyPayment - interest;

balance= balance- principal;

System.out.println(i + "\t\t" + interest

+ "\t\t" +principal+ "\t\t" +balance);

}