Loan negotiation is usually not a straightforward task. A type of loan is the discount installment loan. This type of loan has the following characteristics. Supposing a loan has face value of GHC 1000, interest is 10% and the duration is 24 months. The interest is compounded by multiplying the face value by 0.12 to produce GHC 120. The figure (120) is then multiplied by the loan period of 2 years to give GHC 240 as the total interest owed. This amount is immediately deducted from the face value leaving the customer with only GHC 760. Repayment is then made in monthly equal installments based on the face value. This means that the monthly payment will be GHC 1000 divided by 24 which is approximately 41.67. This method of calculating the monthly repayment is not too bad if the consumer needs only GHC 760 but the calculation is a bit complicated if the consumer needs GHC 1000.

1. Write a program that will take 3 inputs

1. The amount the consumer needs
2. The interest rate
3. The duration of the loan in months. (4 marks)

2. The program should then calculate the face value required in order for the consumer to receive the amount needed. (6 marks)
3. Your program should also calculate the monthly payment (5marks)

Answer rating: 100% (QA)

Here is a Python program that takes three inputs the amount the consumer needs the interest rate and ... View the full answer