This is done in MATLAB, matrixes must be made to look like the end result with a

Question

This is done in MATLAB, matrixes must be made to look like the end result with a principle of $600,000

For the $600,000 loan, the monthly payments should be given by the following matrix:

3861.05 4029.04 4201.45 4378.23 4559.35 4744.76

3035.30 3208.73 3387.98 3572.96 3763.59 3959.73

2543.13 2722.02 2908.07 3101.14 3301.03 3507.54

2217.72 2402.04 2594.80 2795.74 3004.57 3220.93

15, 20, 25, and 30 years, and for 6 annual interest rates varying steadily in equal

amount from 2% to 5%.

The three results must be stored in three separate 2D matrices, with the durations

of the loan varying vertically, and the interest rates varying horizontally. Thus row 1

gives the results of dierent interest rates for a loan of 15 year. Row 2 gives the results

for a loan of 20 years, etc. Column 1 gives the results of dierent durations for an

interest rate of 2%. The next column gives the results for the next higher interest rate,

etc.

Explanation / Answer

emi = zeros(4,6)
loan = 600000
base_rate = .02
increment = 0.006

start_tenure = 15
increment_tenure = 5

for i = 1:4
for j = 1:6
monthly_tenure = (start_tenure + increment_tenure*(i-1))*12
rate = (base_rate + increment*(j-1))/12
  
emi(i,j) = (loan*rate*power((1+rate), monthly_tenure))/(power((1+rate), monthly_tenure) -1)
end
end

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.