I am trying the write the formula in the image using Java. However, I get the wrong output. This is what I am so far for the computation.
Assume Input is: Loan Amount = 50000 and Length = 3 year.
My output is currently "676.08" for 'Monthly Payment' and "25661.0" for "Total Interest Payment".
"Monthly payment" should be "1764.03" and "Total Interest Payment" should be "13505.05".
Code is:
//Program that displays the interest rate and monthly payment based on the loan amount and length of loan the user inputs.
import java.util.Scanner;
public class bankLoanSelection{
public static void main(String[] args){
Scanner input = new Scanner(System.in);
//Declarations.
double interestRate;
final double n = 12;
//Generates an account number in the range of 1 to 1000.
int accountnumber = (int)(Math.random() * 1000)+1;
//User input
System.out.print("Enter Loan Amount: $");
double L = input.nextDouble();
System.out.print("Length of Loan (years): ");
double i = input.nextDouble();
//selection structure using if and if-else statements.
if (L <= 1000)
interestRate = .0825;
else if (L <= 5000)
interestRate = .0935;
else if (L <= 10000)
interestRate = .1045;
else interestRate = .1625;
//Computations.
double MonthlyPayment = L * (interestRate / n) * Math.pow(1 + interestRate / n, i * n) / Math.pow(1 + interestRate / n, i * n) - 1;
double TotalAmountOfLoan = MonthlyPayment * i * n;
double TotalInterest = L - TotalAmountOfLoan;
//Output.
System.out.println("Account Number: #" + accountnumber);
System.out.println("Loan Amount: $" + L);
System.out.println("Loan Length (years): " + i);
System.out.println("Interest Rate: " + interestRate * 100 + "%");
System.out.printf("Total Monthly Payment: $%.2f%n", MonthlyPayment); //Rounds second decimal
System.out.println("Total Interest Payments: $" + TotalInterest);
}
}
You have to put round parentheses between condition.
It should be:
double MonthlyPayment = L * ((interestRate / n) * Math.pow(1 + interestRate / n, i * n))
/ (Math.pow(1 + interestRate / n, i * n) - 1);