$($C$++$ Programming$)$

The new loan amortization calculator will ask the user to:

Enter the loan amount:

Enter the annual interest rate:

Enter the number of months to finance:

From this information you will create a loop that calculates and reports the following columns of data:

Payment$/$Month Payment Amount Principal Paid Principal Remaining Interest this Period Total Interest Paid

Step$-$by$-$Step Hints and Directions:

Step $1$: Calculate the loan payment given the loan amount, number of months $($term$),$ and the interest rate.

#include math.h and program the following calculations:

Loan Payment $=$ Loan Amount $/$ Discount Factor or P $=$ A $/$ D

You need the following values:

Number of Periodic Payments $($n$)=$ Payments per year times number of years

Periodic Interest Rate $($i$)=$ Annual rate divided by number of payment periods

Discount Factor $($D$)=\{[(1+$ i$)^$n$]-1\}/[$i$(1+$ i$)^$n$]$

Assume you borrow $$100,000$ at $6$ percent for $30$ years, to be repaid monthly. What is the monthly payment?

n $=360(30$ years times $12$ monthly payments per year$)$

i $=\mathrm{.}005(6$ percent annually expressed as $\mathrm{.}06,$ divided by $12$ monthly payments per year$$learn how to convert percentages to decimal format$)$

D $=166\mathrm{.}7916(\{[(1+\mathrm{.}005)^360]-1\}/[\mathrm{.}005(1+\mathrm{.}005)^360])$

P $=$ A $/$ D $=100,000/166\mathrm{.}7916=599\mathrm{.}55$

Step $2$: Calculate the Interest this Period. Take the interest rate per month $($ex$.$ for $6\%$ its $0\mathrm{.}06/12=0\mathrm{.}005)$ and multiply by the remaining principle of the loan. $($ex$.0\mathrm{.}005*100,000)=500$

Step $3$: Your Principal Remaining is your beginning principal for the period reduced by the portion of your payment going to your principal. $($ex$.$ Payment is $599\mathrm{.}55-$ Interest of $500$ leaves $99\mathrm{.}55$ going to reduce the principal, so $100,000-99\mathrm{.}55=99,900\mathrm{.}45$ in Principal Remaining$).$

Step $4$: Keep a running total of the interest paid throughout the loan.

Step $5$: Put all of this in a loop and print each iteration to the screen. Now you have your very own loan amortization calculator.