A MONTHLY PAYMENT CALCULATOR
This is a simple program to calculate a monthly payment for a mortgage, car loan, or a reverse annuity.
Let P=Principal (amount borrowed). Let I=Annual Interest Rate (as a percent). Let T=Time (in years). Let M=Monthly Payment.
- :Fix 2
- :Prompt P,I,T
- :I/100/12=>I
- :P*I/(1-(1+I)^(-12*T))=>M
- :Disp {M, 12*M*T}
- :Float
Discussion:
What is an amortization table?
What is a mortgage?
What is credit?
What is Ford (GM) Credit?
How does the interest rate affect consumer spending?
What is "The Fed"?
What is the "Mortgage Interest Deduction"?
What are credit card rates?
What is the "Minimum Monthly Payment" for a credit card?
What are the rates and amounts for "Christmas Loans" solicited through the mail?
What is a down payment? For a house? For a car?
Assignments:
For the program, calculate what your interest costs are. Program it.
What were the 30-year mortgage interest rates at the beginning and end of the 1980's?
How much would you pay total for a $100,000 house at the beginning and at the end of the 1980's?
Quantitatively, what is the difference between 2.9% APR financing and the bank rate for a new $20,000 car?