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Problem Solving IT SBA

Mr. Green is considering taking out a loan to invest $12,000 or twice his annual income, whichever is greater. He obtained interest rates from 3 banks: Bank A offers 7.25% over 3 years, Bank B offers 6.75% over 4 years, and Bank C offers 6.45% over 5 years. The program calculates the monthly payments, total repayment amounts for each loan option to help Mr. Green determine the best choice.

Uploaded by

Shardha Maharaj
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© © All Rights Reserved
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60 views8 pages

Problem Solving IT SBA

Mr. Green is considering taking out a loan to invest $12,000 or twice his annual income, whichever is greater. He obtained interest rates from 3 banks: Bank A offers 7.25% over 3 years, Bank B offers 6.75% over 4 years, and Bank C offers 6.45% over 5 years. The program calculates the monthly payments, total repayment amounts for each loan option to help Mr. Green determine the best choice.

Uploaded by

Shardha Maharaj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Over 5 years

Problem Statement:
Mr. Green is thinking of purchasing some new equipment. He is thinking of investing
twice the amount of money that he made for the year or $12,000, whichever is greater.
He has checked with three banks and their interest rates and repayment periods in
years are: Bank A: 7.25% over 3 years; Bank B: 6,75% over 4 years and Bank C:
6.45% over 5 years. You need to help Mr. Green to determine what his monthly
payments will be for each of these options, including his total loan repayment amount
and recommend which option he should choose.

Variables with definition:


Variable Definition
Count The COUNT function is generally used to count the numbers
of cells in excel or array of numbers.
Profit Profit is the money you have left after paying for business
expenses.
Loan amount Loan amount means the amount of money that is owed at any
given time.
Bank name The is the name of the bank the loan is taken from.
Interest rate Interest rate is the amount charged over the principle amount
by the bank from the borrower.
Number of Is the number of years he has to repay his loan.
years
Monthly Is the amount he will have to repay each month.
payment
Interest Is the amount of money the bank receives for sending out
money.
Total Is the amount of money he has to repay, including the interest.
repayment

Begin
For Bank 1 to 3 Do begin
Prompt user for money made in the year
Read “AmtOfMoney”
IF “AmtOfMoney” * 2 > 12000 THEN
Write “Invest”
ELSE
“AmtOfMoney” * 2 < 12000
Write “Invest 12000”
ENDIF
Simple interest = SI
Loan Amount = LA
Total= AmtOfMoney + SI
Monthly Payment = MnthlyPM
Prompt user for ‘AmtOfMoney’
Read AmtOfMoney
Prompt user for Rate
Read ‘R’
Prompt user for time in years
Read ‘T’
SI = AmtOfMoney * R * T / 100
MnthlyPM
ENDFOR
Write ‘Simple interest of money is’, SI/(T*12)
Write ‘Total Amount is’, Total
Write ‘Monthly payment amount is’, MnthlyPM
END.
Test Data
3000, 8000,
7500,
15000, 2000
Trace Table 1

Line Counter AmtOfMone Result AmtOfMone Rate Time SI TotalAmoun MnthlyP


y y t M
1 1 - - - - - - - -
2 1 - - - - - - - -
3 1 3000 - - - - - - -
4 1 3000 6000 - - - - - -
5 1 3000 6000 12000 - - - - -
6 1 3000 6000 - - - - - -
7 1 3000 6000 12000 - - - - -
8 1 3000 6000 12000 - - - - -
9 1 3000 6000 12000 7.25 - - - -
10 1 3000 6000 12000 7.25 - - - -
11 1 3000 6000 12000 7.25 3- - - -
12 1 3000 6000 12000 7.25 3 2700 - -
13 1 3000 6000 12000 7.25 3 2700 14700 -
14 1 3000 6000 12000 7.25 3 2700 14700 75
15 2 3000 6000 12000 7.25 3 2700 14700 75
16 2 3000 6000 12000 7.25 3 2700 14700 75
17 2 3000 6000 12000 7.25 3 2700 14700 75
18 2 3000 6000 12000 7.25 3 2700 14700 75
19 2 3000 6000 12000 7.25 3 2700 14700 75
20 2 3000 6000 12000 7.25 3 2700 14700 75
21 2 3000 6000 12000 7.25 3 2700 14700 75
22 2 3000 6000 12000 7.25 3 2700 14700 75
23 2 3000 6000 12000 6.75 3 2700 14700 75
24 2 3000 6000 12000 6.75 3 2700 14700 75
25 2 3000 6000 12000 6.75 4 2700 14700 75
26 2 3000 6000 12000 6.75 4 3240 14700 75
27 2 3000 6000 12000 6.75 4 3240 15240 75
28 2 3000 6000 12000 6.75 4 3240 15240 67.50
29 3 3000 6000 12000 6.75 4 3240 15240 67.50
30 3 3000 6000 12000 6.75 4 3240 15240 67.50
31 3 3000 6000 12000 6.75 4 3240 15240 67.50
32 3 3000 6000 12000 6.75 4 3240 15240 67.50
33 3 3000 6000 12000 6.75 4 3240 15240 67.50
34 3 3000 6000 12000 6.75 4 3240 15240 67.50
35 3 3000 6000 12000 6.75 4 3240 15240 67.50
36 3 3000 6000 12000 6.75 4 3240 15240 67.50
37 3 3000 6000 12000 6.45 4 3240 15240 67.50
38 3 3000 6000 12000 6.45 4 3240 15240 67.50
39 3 3000 6000 12000 6.45 5 3240 15240 67.50
40 3 3000 6000 12000 6.45 5 3870 15240 67.50
41 3 3000 6000 12000 6.45 5 3870 15870 67.50
42 3 3000 6000 12000 6.45 5 3870 15870 64.50

Trace Table 2

Line Counter AmtOfMone Result AmtOfMone Rate Time SI TotalAmoun MnthlyP


y y t M
1 1 - - - - - - - -
2 1 - - - - - - - -
3 1 8000 - - - - - - -
4 1 8000 16000 - - - - - -
5 1 8000 16000 16000 - - - - -
6 1 8000 16000 - - - - - -
7 1 8000 16000 16000 - - - - -
8 1 8000 16000 16000 - - - - -
9 1 8000 16000 16000 7.25 - - - -
10 1 8000 16000 16000 7.25 - - - -
11 1 8000 16000 16000 7.25 3 - - -
12 1 8000 16000 16000 7.25 3 3480 - -
13 1 8000 16000 16000 7.25 3 3480 19480 -
14 1 8000 16000 16000 7.25 3 3480 19480 96.66
15 2 8000 16000 16000 7.25 3 3480 19480 96.66
16 2 8000 16000 16000 7.25 3 3480 19480 96.66
17 2 8000 16000 16000 7.25 3 3480 19480 96.66
18 2 8000 16000 16000 7.25 3 3480 19480 96.66
19 2 8000 16000 16000 7.25 3 3480 19480 96.66
20 2 8000 16000 16000 7.25 3 3480 19480 96.66
21 2 8000 16000 16000 7.25 3 3480 19480 96.66
22 2 8000 16000 16000 7.25 3 3480 19480 96.66
23 2 8000 16000 16000 6.75 3 3480 19480 96.66
24 2 8000 16000 16000 6.75 3 3480 19480 96.66
25 2 8000 16000 16000 6.75 4 3480 19480 96.66
26 2 8000 16000 16000 6.75 4 4320 19480 96.66
27 2 8000 16000 16000 6.75 4 4320 20320 96.66
28 2 8000 16000 16000 6.75 4 4320 20320 90
29 3 8000 16000 16000 6.75 4 4320 20320 90
30 3 8000 16000 16000 6.75 4 4320 20320 90
31 3 8000 16000 16000 6.75 4 4320 20320 90
32 3 8000 16000 16000 6.75 4 4320 20320 90
33 3 8000 16000 16000 6.75 4 4320 20320 90
34 3 8000 16000 16000 6.75 4 4320 20320 90
35 3 8000 16000 16000 6.75 4 4320 20320 90
36 3 8000 16000 16000 6.75 4 4320 20320 90
37 3 8000 16000 16000 6.45 4 4320 20320 90
38 3 8000 16000 16000 6.45 4 4320 20320 90
39 3 8000 16000 16000 6.45 5 4320 20320 90
40 3 8000 16000 16000 6.45 5 5160 20320 90
41 3 8000 16000 16000 6.45 5 5160 21160 90
42 3 8000 16000 16000 6.45 5 5160 21160 86
Trace Table 3

Line Counter AmtOfMone Result AmtOfMone Rate Time SI TotalAmoun MnthlyP


y y t M
1 1 - - - - - - - -
2 1 - - - - - - - -
3 1 7500 - - - - - - -
4 1 7500 15000 - - - - - -
5 1 7500 15000 15000 - - - - -
6 1 7500 15000 - - - - - -
7 1 7500 15000 15000 - - - - -
8 1 7500 15000 15000 - - - - -
9 1 7500 15000 15000 7.25 - - - -
10 1 7500 15000 15000 7.25 - - - -
11 1 7500 15000 15000 7.25 3- - - -
12 1 7500 15000 15000 7.25 3 3262.5 - -
0
13 1 7500 15000 15000 7.25 3 3262.5 18262.50 -
0
14 1 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
15 2 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
16 2 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
17 2 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
18 2 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
19 2 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
20 2 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
21 2 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
22 2 7500 15000 15000 7.25 3 3262.5 18262.50 90.63
0
23 2 7500 15000 15000 6.75 3 3262.5 18262.50 90.63
0
24 2 7500 15000 15000 6.75 3 3262.5 18262.50 90.63
0
25 2 7500 15000 15000 6.75 4 3262.5 18262.50 90.63
0
26 2 7500 15000 15000 6.75 4 4050 18262.50 90.63
27 2 7500 15000 15000 6.75 4 4050 4837.50 90.63
28 2 7500 15000 15000 6.75 4 4050 4837.50 84.38
29 3 7500 15000 15000 6.75 4 4050 4837.50 84.38
30 3 7500 15000 15000 6.75 4 4050 4837.50 84.38
31 3 7500 15000 15000 6.75 4 4050 4837.50 84.38
32 3 7500 15000 15000 6.75 4 4050 4837.50 84.38
33 3 7500 15000 15000 6.75 4 4050 4837.50 84.38
34 3 7500 15000 15000 6.75 4 4050 4837.50 84.38
35 3 7500 15000 15000 6.75 4 4050 4837.50 84.38
36 3 7500 15000 15000 6.75 4 4050 4837.50 84.38
37 3 7500 15000 15000 6.45 4 4050 4837.50 84.38
38 3 7500 15000 15000 6.45 4 4050 4837.50 84.38
39 3 7500 15000 15000 6.45 5 4050 4837.50 84.38
40 3 7500 15000 15000 6.45 5 4837.5 4837.50 84.38
0
41 3 7500 15000 15000 6.45 5 4837.5 19837.50 84.38
0
42 3 7500 15000 15000 6.45 5 4837.5 19837.50 80.63
0

Trace Table 4

Line Counter AmtOfMone Result AmtOfMone Rate Time SI TotalAmoun MnthlyP


y y t M
1 1 - - - - - - - -
2 1 - - - - - - - -
3 1 15000 - - - - - - -
4 1 15000 30000 - - - - - -
5 1 15000 30000 30000 - - - - -
6 1 15000 30000 - - - - - -
7 1 15000 30000 30000 - - - - -
8 1 15000 30000 30000 - - - - -
9 1 15000 30000 30000 7.25 - - - -
10 1 15000 30000 30000 7.25 - - - -
11 1 15000 30000 30000 7.25 3- - - -
12 1 15000 30000 30000 7.25 3 6525 - -
13 1 15000 30000 30000 7.25 3 6525 36525 -
14 1 15000 30000 30000 7.25 3 6525 36525 181.25
15 2 15000 30000 30000 7.25 3 6525 36525 181.25
16 2 15000 30000 30000 7.25 3 6525 36525 181.25
17 2 15000 30000 30000 7.25 3 6525 36525 181.25
18 2 15000 30000 30000 7.25 3 6525 36525 181.25
19 2 15000 30000 30000 7.25 3 6525 36525 181.25
20 2 15000 30000 30000 7.25 3 6525 36525 181.25
21 2 15000 30000 30000 7.25 3 6525 36525 181.25
22 2 15000 30000 30000 7.25 3 6525 36525 181.25
23 2 15000 30000 30000 6.75 3 6525 36525 181.25
24 2 15000 30000 30000 6.75 3 6525 36525 181.25
25 2 15000 30000 30000 6.75 4 6525 36525 181.25
26 2 15000 30000 30000 6.75 4 8100 36525 181.25
27 2 15000 30000 30000 6.75 4 8100 15240 181.25
28 2 15000 30000 30000 6.75 4 8100 15240 168.75
29 3 15000 30000 30000 6.75 4 8100 15240 168.75
30 3 15000 30000 30000 6.75 4 8100 15240 168.75
31 3 15000 30000 30000 6.75 4 8100 15240 168.75
32 3 15000 30000 30000 6.75 4 8100 15240 168.75
33 3 15000 30000 30000 6.75 4 8100 15240 168.75
34 3 15000 30000 30000 6.75 4 8100 15240 168.75
35 3 15000 30000 30000 6.75 4 8100 15240 168.75
36 3 15000 30000 30000 6.75 4 8100 15240 168.75
37 3 15000 30000 30000 6.45 4 8100 15240 168.75
38 3 15000 30000 30000 6.45 4 8100 15240 168.75
39 3 15000 30000 30000 6.45 5 8100 15240 168.75
40 3 15000 30000 30000 6.45 5 9675 15240 168.75
41 3 15000 30000 30000 6.45 5 9675 39675 168.75
42 3 15000 30000 30000 6.45 5 9675 39675 161.25

Trace Table 5

Line Counter AmtOfMone Result AmtOfMone Rate Time SI TotalAmoun MnthlyP


y y t M
1 1 - - - - - - - -
2 1 - - - - - - - -
3 1 2000 - - - - - - -
4 1 2000 4000 - - - - - -
5 1 2000 4000 12000 - - - - -
6 1 2000 4000 - - - - - -
7 1 2000 4000 12000 - - - - -
8 1 2000 4000 12000 - - - - -
9 1 2000 4000 12000 7.25 - - - -
10 1 2000 4000 12000 7.25 - - - -
11 1 2000 4000 12000 7.25 3- - - -
12 1 2000 4000 12000 7.25 3 2700 - -
13 1 2000 4000 12000 7.25 3 2700 14700 -
14 1 2000 4000 12000 7.25 3 2700 14700 75
15 2 2000 4000 12000 7.25 3 2700 14700 75
16 2 2000 4000 12000 7.25 3 2700 14700 75
17 2 2000 4000 12000 7.25 3 2700 14700 75
18 2 2000 4000 12000 7.25 3 2700 14700 75
19 2 2000 4000 12000 7.25 3 2700 14700 75
20 2 2000 4000 12000 7.25 3 2700 14700 75
21 2 2000 4000 12000 7.25 3 2700 14700 75
22 2 2000 4000 12000 7.25 3 2700 14700 75
23 2 2000 4000 12000 6.75 3 2700 14700 75
24 2 2000 4000 12000 6.75 3 2700 14700 75
25 2 2000 4000 12000 6.75 4 2700 14700 75
26 2 2000 4000 12000 6.75 4 8100 14700 75
27 2 2000 4000 12000 6.75 4 8100 15240 75
28 2 2000 4000 12000 6.75 4 8100 15240 67.50
29 3 2000 4000 12000 6.75 4 8100 15240 67.50
30 3 2000 4000 12000 6.75 4 8100 15240 67.50
31 3 2000 4000 12000 6.75 4 8100 15240 67.50
32 3 2000 4000 12000 6.75 4 8100 15240 67.50
33 3 2000 4000 12000 6.75 4 8100 15240 67.50
34 3 2000 4000 12000 6.75 4 8100 15240 67.50
35 3 2000 4000 12000 6.75 4 8100 15240 67.50
36 3 2000 4000 12000 6.75 4 8100 15240 67.50
37 3 2000 4000 12000 6.45 4 8100 15240 67.50
38 3 2000 4000 12000 6.45 4 8100 15240 67.50
39 3 2000 4000 12000 6.45 5 8100 15240 67.50
40 3 2000 4000 12000 6.45 5 3870 15240 67.50
41 3 2000 4000 12000 6.45 5 3870 15870 67.50
42 3 2000 4000 12000 6.45 5 3870 15870 64.50

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