The interest rate per period

Assignment Help Python Programming

Reference no: EM13165799

This program will help you figure out how much you will need to pay per month, assuming the loan is a standard one.

Three quantities define how much a borrower has to pay per month:

PV, the amount borrowed (this is called the "present value"). If you borrowed $200,000.00, then PV is $200,000.00.
r, the interest rate per period. For example, if your loan's interest is 6.5% per year, and you are paying monthly, this would be 6.5%/12. If you are paying every two weeks, r would be 6.5%/26, because there are 26 two-week periods in a year.
n, the number of periods. If you have a 5 year loan with monthly payments, then n = 5 × 12 = 60. If you pay biweekly, then n = 5 × 26 = 130.

We are interested in two values: the monthly payment P, and how much principle RP remains each month.

The formula for the monthly payment, which does not change throughout the repaying of the loan is:

$P=\frac{r\times PV}{1-(1+r)^{-n}}$

The amount of principle that is left to be repaid after m months is:

$RP=\frac{PV\times (1-(1+_r)^{m-n})}{1-(1+r)^{-n}}$

Assume the loan is to be repaid in monthly payments. The amount borrowed is $5,000.00. The annual interest rate is 6.5%. The period of the loan is 1 year. Write a program thatcomputes and prints the month, payment, and remaining principle for each payment.
Input. This program takes no input.
Output. Your program's output should look exactly like this:

Payment schedule for a loan of $5000.00 at 6.5% interest, repaid over 1 year:
month payment remaining
   1   431.48   4595.60
   2   431.48   4189.01
   3   431.48   3780.22
   4   431.48   3369.21
   5   431.48   2955.98
   6   431.48   2540.51
   7   431.48   2122.79
   8   431.48   1702.81
   9   431.48   1280.55
  10   431.48    856.00
  11   431.48    429.16
  12   431.48      0.00

Reference no: EM13165799

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