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    The document discusses calculating monthly loan payments, total interest paid, and total repayment amounts for different loan scenarios with varying interest rates and terms. It provides sample calculations for a $5,000,000 loan over 3, 4, and 5 years at interest rates of 7.25%, 6.75%, and 6.45% respectively.

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    The document discusses calculating monthly loan payments, total interest paid, and total repayment amounts for different loan scenarios with varying interest rates and terms. It provides sample calculations for a $5,000,000 loan over 3, 4, and 5 years at interest rates of 7.25%, 6.75%, and 6.45% respectively.

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    The document discusses calculating monthly loan payments, total interest paid, and total repayment amounts for different loan scenarios with varying interest rates and terms. It provides sample calculations for a $5,000,000 loan over 3, 4, and 5 years at interest rates of 7.25%, 6.75%, and 6.45% respectively.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    40 views5 pages

    START

    Uploaded by

    Just Learn
    The document discusses calculating monthly loan payments, total interest paid, and total repayment amounts for different loan scenarios with varying interest rates and terms. It provides sample calculations for a $5,000,000 loan over 3, 4, and 5 years at interest rates of 7.25%, 6.75%, and 6.45% respectively.

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    © All Rights Reserved
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    START

    Read: the loan amount, interest rate, number of


    years to repay;

    Annual interest rate= interest rate *12


    Monthly interest rate = Annual interest rate / 12/100;
    Total number of payments = Number of years * 12;
    monthly_payment = (principal * monthly_interest_rate) / (1
    - (1 + monthly_interest_rate)^-total_payments)
    Total repayment amount = Monthly payment * Total
    number of payments;
    Total interest paid = Total repayment amount - Loan
    amount;
    Output:Monthly payment amount, Total interest paid at the
    end of the loan, Total repayment amount;
    END

    display the monthly payment amount, total interest paid at the end of the loan, and
    total repayment amount.
    Te investm Intere Yea Monthly Total Total
    st ent st rs Payment Interest Repaymen
    Ca Rate t
    se

    1 $5,000,0 7.25% 3 $156,040 $616,671.8 $5,616,671


    00 .84 7 .87

    2 $5,000,0 6.75% 4 $121,016 $840,781.8 $5,840,781


    00 .31 4 .84

    3 $5,000,0 6.45% 5 $99,086. $1,945,168 $6,945,168


    00 14 .56 .56

    4 $3,000,0 6.75% 4 $72,609. $504,469.1 $3,504,469


    00 79 0 .10

    5 $7,500,0 7.25% 3 $234,101 $924,503.8 $8,424,503


    00 .26 0 .80
    Certainly! Let’s calculate the monthly payments, total
    interest, and total repayment amount for Mr. Green’s
    options with the given interest rates and repayment
    periods.
    Here’s the breakdown for each bank:
    1. Bank A (7.25% over 3 years):
    ○ Loan amount: Assume Mr. Green invests
    twice the amount he made for the year, which
    we’ll denote as X.
    ○ If X is less than $5,000,000, we’ll use
    $5,000,000 as the loan amount.
    ○ Interest rate: 7.25% (annual rate)
    ○ Loan term: 3 years
    ○ Calculate the monthly payment using the loan
    interest formula.
    ○ Compute the total interest paid and total
    repayment amount.
    2. Bank B (6.75% over 4 years):
    ○ Same loan amount as above.
    ○ Interest rate: 6.75% (annual rate)
    ○ Loan term: 4 years
    ○ Calculate the monthly payment, total interest,
    and total repayment amount.
    3. Bank C (6.45% over 5 years):
    ○ Same loan amount as above.
    ○ Interest rate: 6.45% (annual rate)
    #include <stdio.h>
    #include <math.h>
    double calculateMonthlyPayment(double loanAmount,
    double annualInterestRate, int loanTerm) {
    double monthlyRate = annualInterestRate / 12;
    int numPayments = loanTerm * 12;
    return (monthlyRate * loanAmount) / (1 - pow(1 +
    monthlyRate, -numofPayments));
    }

    int main() {
    double loanAmount = 5000000; // Assume Mr. Green
    invests $5,000,000
    double annualInterestRateA = 0.0725;
    double annualInterestRateB = 0.0675;
    double annualInterestRateC = 0.0645;
    int loanTermA = 3;
    int loanTermB = 4;
    int loanTermC = 5;
    double monthlyPaymentA =
    calculateMonthlyPayment(loanAmount,
    annualInterestRateA, loanTermA);
    double totalPaymentA = monthlyPaymentA *
    loanTermA * 12;
    double totalInterestA = totalPaymentA -
    loanAmount;
    printf("Bank A:\n");
    printf("Monthly payment: $%.2lf\n",
    monthlyPaymentA);
    printf("Total interest paid: $%.2lf\n", totalInterestA);
    printf("Total repayment amount: $%.2lf\n\n",
    totalPaymentA);

    return 0;
    }

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