Write a program to determine the mortgage insurance, loan amount and mortgage payments for a person...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Write a program to determine the mortgage insurance, loan amount and mortgage payments for a person buying a house. The program should ask the user for the following things: (1) Asking price for the house (2) Loan amortization period in years (3) Interest rate offered by the bank (4) Down payment available with the user (5) Mortgage payments monthly (M/m) or bi-weekly (B/b) The mortgage insurance interest rates for various down payment ranges are mentioned below along with the formulae required to compute mortgage insurance, loan amount and mortgage payments. Mortgage Insurance Interest rate Down Payment Available with the Buyer 5% -9.99% 10% - 14.99% 15% -19.99% 4.00% 3.10% 2.80% 20% or higher 0.00% Here is the formula to calculate the Mortgage Insurance: Mortgage Insurance (MI) = (Asking Price - Down Payment)* Mortgage insurance interest For instance, if the asking price was 100,000$ and down payment was 10,000$, interest rate will be 3.10% and the mortgage insurance will be (100,000 - 10,000) *3.1 = 2,790$. The loan amount is then calculated as Loan Amount = Asking Price - Down Payment + Mortgage insurance = 90,000 + 2,790 = 92,790$. The mortgage payments depend on loan amount, loan amortization period, interest rate offered by the bank (not the mortgage insurance interest rate), and whether the payments are made monthly or bi-weekly. Mortgage payments M = L x r(1+r)" (1+r)"-1 where, L is the loan amount, r is the monthly/bi-weekly interest rate (to be computed based on the yearly interest rate) and n is the number of payments. For instance, the loan amount calculated above is considered for amortization period of 25 years with bank providing 3.66% interest rate and the payments are done monthly then the mortgage payments will be computed as follows. L = 92,790$ r= (3.66/100)/12 = 0.00305 n = 25*12 = 300 M = 92,790 x 0.00305 (1+0.00305)300 (1+0.00305) 300-1 -= 472.53183$ In case of a b-weekly payment mode, there are 52 weeks in a year making 26 payments per year and n will become 25 * 26 = 650 and r will become (3.66/100)/26 = 0.00141 M = 92,790 x 0.00141 (1+0.00141)650 (1+0.00141)650-1 -= 217.97621$ You need to force the user to enter minimum 5% down payment and correct character for mode of mortgage payments (i.e. M/m or B/b) by the use of loop construct in Java. Here are a few sample outputs to illustrate the expected behavior of your program. Note: user input is highlighted in grey. Mortgage Calculator Please enter the asking price for the house: 100000 Please enter the loan amortization period in years: 25 Please enter the interest rate offered by the bank: 3.661 Please enter the down payment amount in dollars: 4500 Please enter the down payment amount in dollars: 10000 Please enter the mode of mortgage payments monthly (M/m) or bi-weekly (8/b): m Mortgage Result Your mortgage insurance will be $2790.0 Your total loan amount will be $92790.0 Your mortgage payments will be $472.53183 Mortgage Calculator Please enter the asking price for the house: 100000 Please enter the loan amortization period in years: 25 Please enter the interest rate offered by the bank: 3.66 Please enter the down payment amount in dollars: 10000 Please enter the mode of mortgage payments monthly (M/m) or bi-weekly (B/b): V Please enter the mode of mortgage payments monthly (M/m) or bi-weekly (B/b): B Mortgage Result Your mortgage insurance will be $2790.0 Your total loan amount will be $92790.0 Your mortgage payments will be $217.97621 Write a program to determine the mortgage insurance, loan amount and mortgage payments for a person buying a house. The program should ask the user for the following things: (1) Asking price for the house (2) Loan amortization period in years (3) Interest rate offered by the bank (4) Down payment available with the user (5) Mortgage payments monthly (M/m) or bi-weekly (B/b) The mortgage insurance interest rates for various down payment ranges are mentioned below along with the formulae required to compute mortgage insurance, loan amount and mortgage payments. Mortgage Insurance Interest rate Down Payment Available with the Buyer 5% -9.99% 10% - 14.99% 15% -19.99% 4.00% 3.10% 2.80% 20% or higher 0.00% Here is the formula to calculate the Mortgage Insurance: Mortgage Insurance (MI) = (Asking Price - Down Payment)* Mortgage insurance interest For instance, if the asking price was 100,000$ and down payment was 10,000$, interest rate will be 3.10% and the mortgage insurance will be (100,000 - 10,000) *3.1 = 2,790$. The loan amount is then calculated as Loan Amount = Asking Price - Down Payment + Mortgage insurance = 90,000 + 2,790 = 92,790$. The mortgage payments depend on loan amount, loan amortization period, interest rate offered by the bank (not the mortgage insurance interest rate), and whether the payments are made monthly or bi-weekly. Mortgage payments M = L x r(1+r)" (1+r)"-1 where, L is the loan amount, r is the monthly/bi-weekly interest rate (to be computed based on the yearly interest rate) and n is the number of payments. For instance, the loan amount calculated above is considered for amortization period of 25 years with bank providing 3.66% interest rate and the payments are done monthly then the mortgage payments will be computed as follows. L = 92,790$ r= (3.66/100)/12 = 0.00305 n = 25*12 = 300 M = 92,790 x 0.00305 (1+0.00305)300 (1+0.00305) 300-1 -= 472.53183$ In case of a b-weekly payment mode, there are 52 weeks in a year making 26 payments per year and n will become 25 * 26 = 650 and r will become (3.66/100)/26 = 0.00141 M = 92,790 x 0.00141 (1+0.00141)650 (1+0.00141)650-1 -= 217.97621$ You need to force the user to enter minimum 5% down payment and correct character for mode of mortgage payments (i.e. M/m or B/b) by the use of loop construct in Java. Here are a few sample outputs to illustrate the expected behavior of your program. Note: user input is highlighted in grey. Mortgage Calculator Please enter the asking price for the house: 100000 Please enter the loan amortization period in years: 25 Please enter the interest rate offered by the bank: 3.661 Please enter the down payment amount in dollars: 4500 Please enter the down payment amount in dollars: 10000 Please enter the mode of mortgage payments monthly (M/m) or bi-weekly (8/b): m Mortgage Result Your mortgage insurance will be $2790.0 Your total loan amount will be $92790.0 Your mortgage payments will be $472.53183 Mortgage Calculator Please enter the asking price for the house: 100000 Please enter the loan amortization period in years: 25 Please enter the interest rate offered by the bank: 3.66 Please enter the down payment amount in dollars: 10000 Please enter the mode of mortgage payments monthly (M/m) or bi-weekly (B/b): V Please enter the mode of mortgage payments monthly (M/m) or bi-weekly (B/b): B Mortgage Result Your mortgage insurance will be $2790.0 Your total loan amount will be $92790.0 Your mortgage payments will be $217.97621
Expert Answer:
Answer rating: 100% (QA)
STEP BY STEP ANSWER CODE IN JAVA import javautilScanner public class MortgageCalculator public stati... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
Posted Date:
Students also viewed these programming questions
-
What comprehensive risk management strategies can high-net-worth individuals implement to safeguard their assets against potential liabilities, including liability insurance coverage, asset...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
PWX Inc. has the following information for its years ended June 30: Required: Calculate the accounts receivable turnover and average collection period for 20X3 and 20X2. Comment on the trend. What...
-
To evaluate the effect of a treatment, a sample of n = 9 is obtained from a population with a mean of = 40, and the treatment is administered to the individuals in the sample. After treatment, the...
-
Suppose you want to estimate a population proportion, p, and p = .42, N = 6,000, and n = 1,600. Find an approximate 95% confidence interval for p.
-
Convert the process flowsheet in Figure 7.22 into a flowsheet for mass-balance simulation Task-1. List the model equations, the variables to be specified, and the variables to be calculated. Figure...
-
Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity and the associated activity driver that allow you to define the cost behavior. For example, assume...
-
David Bowman, the manager of Lava Java Packaging, has several concerns over the processes being used in the business. Firstly, David is concerned about the adequacy of the processes and controls in...
-
Hastings College pooled the individual investments of three of its funds on December 31, 2024. The recorded value and the fair market value of the investments on December 31, 2024, are presented...
-
One of the characteristics of mass revivals was that they a. Were only held in the New England colonies. b. Were welcoming of people from all ethnicities and religious denominations. c. Primarily...
-
What is the output that minimize ATC for a firm given the following total cost function TC = 31 Q + 24 Q 2 - 5.5 Q 3 + (1/3) Q 4
-
Simplify the Expression 4x 8 2 + + 3x-4 3x - 4x X
-
You are considering investing in a well-diversified portfolio of various stock. Your stockbroker has informed you that the expected return for such a portfolio is 12.3%. Further information reveals...
-
1-Create a bulleted list of at least 7 governance and ethical problems you identified in this case. List the item then in a single sentence explain why it is a problem or issue. 2-Then choose the...
-
A company had the following account balances at year-end: Cash...... $30,000 Accounts receivable...... 32,000 Accounts payable...... 20.000 Fees earned....... 65.000 Rent expense....... 15.000...
-
Which of the following facts about the p-value of a testis correct? A. The p-value is calculatedunder the assumption that the null hypothesis is true. B. The smaller the p-value, themore evidence the...
-
Is times interest earned meaningful for utilities? Why or why not?
-
Pearson sets up a fund to pay $1000 at the end of each month for 9.5 years. Interest on the fund is 3.9% compounded monthly. (a) How much money must be deposited into the fund? (b) How much will be...
-
A financial agreement requires the payment of $1200 in 9 months, $1400 in 18 months, and $1600 in 30 months. When would an alternative single payment of $4000 have to be made if money is worth 7%...
-
Delta Furnishings received an invoice dated May 10 for a shipment of goods received June 21. The invoice was for $8400.00 less 33 13% and 12 12% with terms 3/20, R.O.G. How much must Delta pay on...
-
Examine resource rental pattern on following characteristics: a. Simplicity b. Generality c. Reusability d. Completeness e. Stability f. Visual and graphical model g. Testability
-
Draw a stable class diagram for account pattern.
-
What are the advantages of separating account and entry patterns?
Study smarter with the SolutionInn App