When you borrow money to buy an item, you repay the loan by making periodic paym
ID: 3881705 • Letter: W
Question
When you borrow money to buy an item, you repay the loan by making periodic payments over a certain period of time. Of course, the lending company will charge interest on the loan. Every periodic payment consists of the interest on the loan and the payment toward the principal amount (the amount still left to be paid).
As an example, suppose you borrow $1,000 at an interest rate of 7.2% per year and the payments are monthly and your monthly payment is $25. The interest is 7.2% per year and the payments are monthly, so the interest rate per month is 7.2 / 12 = 0.6%. The first month's interest on $1,000 is 1000 x 0.0006 = 6. Because the payment is $25 and the interest for the first month is $6, the payment toward the principal amount is 25 - 6 = 19. This means that after making the first payment, the principal left to pay is now 1000 - 19 = 981. For the second payment, the interest is calculated on $981. The interest for the second month is 981 x 0.0006 = 5.886, or $5.89 when rounded to the nearest cent. Thus, the second month's payment toward the principal is 25 - 5.89 = 19.11 and the remaining balance after the second payment is 981 - 19.11 = 961.89. This process is repeated until the loan is repaid.
Write a program that accepts as input:
The loan amount
The interest rate per year
The monthly payment
The program then outputs the number of months it would take to repay the loan. Note that if the monthly payment is less than or equal to the first month's interest, then the loan will never get paid off. If this is the case, then the program must warn the user that the monthly payment is too low and suggest that the monthly payment must be greater than what the program calculated as the first month's interest. Also, the last month's payment may likely be too high for the amount of principal left. Calculate and output the last month's payment that brings the principal down to exactly $0.
Allow the user to give new sets of input until the user says he wishes to quit the program.
Finally, allow the user to do multiple sets of calculations by asking if the user wants to run the calculations again.
Explanation / Answer
Program code:
// LoanPayment.cpp
#include <iostream>
using namespace std;
//main function
int main()
{
//declare the required variables
double loanborrow;
double monthlyamount;
double rate,rpm;
double interest=0;
double principal;
//prompt the user to enter the respective info as asked
cout<<"Enter the loan borrowed: $";
cin>>loanborrow;
cout<<"Enter the rate of interest per year: ";
cin>>rate;
cout<<"Enter monthly pay: $";
cin>>monthlyamount;
//calculate the rate per month
rpm=(rate/12.0)/100;
//declare the count variable
//that inimates the number of years
int count=0;
//execute a loop until the loan if ful filled
while(loanborrow>=0)
{
//condition to check whether the monthly
//pay is less than interest
if(monthlyamount>interest)
{
//if the condition is true,
//then execute the following statements
interest=loanborrow*rpm;
principal=monthlyamount-interest;
loanborrow=loanborrow-principal;
count++;
}
//if the condition is false
//display the below information
else
{
cout<<"Monthly pay is too low than the interest."
<<"The loan cannot be recovered."<<endl;
}
}
cout<<"In "<<count<<" months the loan will be repaid."<<endl;
system("pause");
return 0;
}
------------------------------------------------------------------------------------------------------
Sample Output:
Enter the loan borrowed: $1000
Enter the rate of interest per year: 7.2
Enter monthly pay: $25
In 46 months the loan will be repaid.
Press any key to continue . . .
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.