Here is an example of a transaction just took place in a store where hi-fi equipment are sold. A customer purchased a stereo system that cost him $1,000 on the following credit plan. No down payment, and interest rate of 18% per year (and hence 1.5% per month), and a fixed monthly payment of 5% of the original loan (i.e. $50 in this example). The monthly payment of $50 is used to pay the interest and whatever is left is used to pay part of the remaining debt. Hence the first month he pays 1.5% of $1000 in interest. That is $15.00 in interest. So, the remaining $35 is deducted from his debt, which leaves him with a debt of $965.00. The next month he pays interest of 1.5% of $965.00, which is $14.48. Hence, he can deduct $35.52 (which is $50 - $14.48) from the amount he owes.
Write a C# application program that will ask for the loan amount and the interest rate. Then the program will tell you - The monthly payment, How many months it will take you to pay off the loan, The total amount of interest paid over the life of the loan. Program should also indicate the final payment as in many cases the final payment at the end of the loan would not be exactly the normal monthly payment and also the total paid (initial loan plus the interest). You do not need to output the monthly interest paid and the remaining debt. Your output should look like the following…(it may differ, if you use GUIs).
Here is an example…..
You have input these….
Please type loan amount : 1000.00
Please type interest rate : 18.0
You should get an output like this….
Loan amount : $1000.00
Interest rate : 18%
Monthly payment : $50.00
Final payment : $47.12
Life of loan : 24 Months
Total Interest paid : $197.83
Total paid at the end of loan : $1197.83