In MATLAB The balance of a loan, B, after n monthly payments is given by B = A (
ID: 3848364 • Letter: I
Question
In MATLAB
The balance of a loan, B, after n monthly payments is given by B = A (1 + r/1200)^n P/r/1200[(1 + r/1200)^n - 1)] where A is the loan amount, P is the amount of a monthly payment, and r is the yearly interest rate entered in (e.g., 7.5% entered as 7.5). Consider a 5-year $20,000 car loan with 6.5% yearly interest that has a monthly payment of $391.32. Calculate the balance of the loan after every 6 months (i.e., at n =6 12, 18, 24, ....., 54, 60). Each time, calculate the percent of the loan that is already paid. White the results to an output text file ("loan txt") in a three-column table, where the first column displays the month and the second and third columns display the corresponding value of B and percentage of the loan that is already paid, respectively Include an appropriate header for the table.Explanation / Answer
Matlab code:
time = double(12*5);
A = double(20000);
r = double(6.5);
P = double(391.32);
fileID = fopen('loan.txt','w');
fprintf(fileID,'Months B Percetage_paid ');
for n = 6:6:time
future_value = A*( ( 1 + r/1200)^n );
future_value_paid = ( P/(r/1200) )*(( 1 + r/1200)^n - 1);
B = future_value - future_value_paid;
pertg_paid = 100*(future_value_paid/future_value);
fprintf(fileID,'%d %d %d ',n,B,pertg_paid);
end
fclose(fileID);
Output loan.txt:
Months B Percetage_paid
6 18278.9 11.5202
12 16501.1 22.673
18 14664.8 33.4701
24 12768 43.9229
30 10808.6 54.0423
36 8784.76 63.8389
42 6694.22 73.3232
48 4534.8 82.5049
54 2304.25 91.3938
60 0.209504 99.9992
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