Question

A = P \frac{i(1 + i)^n}{(1 + i)^n - 1} 

          A = P \frac{i(1 + i)^n}{(1 + i)^n - 1}
A = P (i(1 + i)^n)/((1 + i)^n - 1)

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Computer Science and Information Technology
Computer Science and Information Technology
Trishna Knowledge Systems 2018 Edition
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USE PYTHON!! Economic formulas are available to compute annual payments for loans. Suppose that you borrow an amount of money P and agree to repay it in n annual payments at an interest rate of i. The formula to compute the annual payment A is: A=P(i(1+i)^(n))/((1+i)^(n)-1) Write a program to compute A. Test it with P = $55,000 and an interest rate of .4667% (i = 0.056/12). Compute results for n = 12, 24, 36, 48, and 60 and display the results as a table with headings and columns for n and A. i(1+ i)n A= (1 + i)" - 1
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Economic formulas are available to compute annual payments for loans. Suppose that you borrow an amount of money P and agree to repay it in n annual payments at an interest rate of i. The formula to compute the annual payment A is: A = P * i * (1 + i)^n / ((1 + i)^n - 1) Write an M-file to compute A. Test it with P = $100,000 and an interest rate of 3.3% (i = 0.033). Compute results for n = 1, 2, 3, 4, and 5 and display the results as a table with headings and columns for n and A.

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Write a complete program to calculate the number of months it will take to pay off a loan. Accept as input the loan amount, interest rate, and monthly payment. Interest is calculated on a monthly basis and is based on how much of the loan is outstanding at that time. The interest rate provided as input is a yearly interest rate, so when calculating interest for the month, remember to divide the interest rate by 12. Sample test run: Enter loan amount (dollars only): 10000 Enter yearly interest rate charged (i.e. 8.5): 5 Enter monthly payment (dollars): 500 Loan amount: $10000.0 It will take 21 months to pay when paying $500 per month Total amount paid: $10536.825 Note: The program must generate an error message in the case where the specified monthly payment is not sufficient to ever pay off the loan.

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Develop and test a Python program that calculates the monthly mortgage payments for a given loan amount, term (number of years) and range of interest rates from 3% to 18%. The fundamental formula for determining this is A/D, where A is the original loan amount, and D is the discount factor. The discount factor is calculated as, D = ((1 + r)^n - 1) / (r(1 + r)^n) where n is the number of total payments (12 times the number of years of the loan) and r is the interest rate, expressed in decimal form (e.g., .05), divided by 12. A monthly payment table should be generated as shown below, Loan Amount: $350,000 Term: 30 years Interest Rate Monthly Payment 3% 1475.61 4% 1670.95 5% 1878.88 6% 2098.43 . . . . 18% 5274.80 Check your results with an online mortgage calculator.

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Transcript

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00:01 In the question they given formula of annual payment.
00:11 Here we have to denote annual payment is a.
00:16 A equal to p multiplies i of 1 plus i hold to the power of n divided by 1 plus i hold to the power of n minus 1.
00:30 It is the formula of annual payment.
00:33 Here we have to find out annual payment a.
00:45 First we have to write the program and run the program.
00:49 We have annual payment.
00:52 First we have to write p equal to in the formula p is borrowed amount of money.
01:00 So we have to enter input.
01:08 First we have to write input enter borrowed amount of money.
01:31 Next we can take i.
01:34 Here i is annual interest rate.
01:39 So we can write the program input of enter annual interest rate.
01:53 0 minus 1 is the annual interest rate.
02:00 Next we can take n.
02:03 Here n is the number of years.
02:06 So we can write the program input of enter number of years.
02:25 Now we can write the formula.
02:28 The formula of annual payment is a equal to.
02:32 In this program we can write the formula in this way...
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