Welcome to Lab 4

Welcome to Lab 4

By the end of this Lab you should be able to do the following.

Create large equations in Java

Lab Topics

Programming Problem

Turn in your standard lab report for this balance of payment problem This is a payment calculator for a loan. You will get the outstanding principal (P), the annual interest rate (i), and (n), the number of years you want to use to pay back the loan from the user. So write a Java program where

A = payment Amount per period
P = initial Principal (loan amount)
r = interest rate per period
n = total number of payments or periods

are taken from the user and the payment is calculated using the following formula

Payment equation

Example: What would the monthly payment be on a 5-year, $20,000 car loan with a nominal 7.5% annual interest rate? We'll assume that the original price was $21,000 and that you've made a $1,000 down payment.

P = $20,000
r = 7.5% per year / 12 months = 0.625% per period
n = 5 years * 12 months = 60 total periods

You could use your amortization calculator to determine that the Payment Amount (A) is $400.76 per month.