Need help getting started thanks

[Coyboss]

Hi there everyone,

I need some help getting started creating a Java program for a class I am taking.

Here is what I need to do:

Create A program written in Java (without a graphical user interface) that will calculate and display the monthly payment amount to fully amortize a $200,000.00 loan over a 30 year term at 5.75‰ interest

I don't even know where to begin with this.

I am using JDK 6 Update 23 and we are required to use Text Pad for the class to write our coding.

Thanks in advance for any help.

IKE

[pbl]

In which particular part of the assignment do you have a probelm ?

[Coyboss]

Where to start and how to develope the calculations for the java.

[java1]

public class Main {


    public static void main(String[] args) {
             double initialAmount= 200000.00;

        double totalDue=   (200000.00)*(0.0575)*(30)+ initialAmount;

        double monthlyRate= totalDue/360;

        System.out.println(monthlyRate);

    }

}

[Coyboss]

The Java works, but the result is incorrect.

The monthly payment should be $1167.15.
I don't know how to make the formula work to get the correct results.

IKE

[toko]

public class Loan {

    public static void main(String[] args) {
    	double initialAmount= 200000.00;
    	double MonthlyRate = initialAmount * ((0.0575 * Math.pow(1+0.0575,360)) / ( Math.pow(1+0.0575,360)-1));
    	System.out.println(monthlyRate);
    }
}

I got 11500.000020881538.

I used the formula from http://en.wikipedia.org/wiki/Amortization_calculator

[Coyboss]

I am not sure about the formula from Wikipedia, but I used
3 different online mortgage calculators and they all came up with the same answer for the payment. $1167.15

Remember this is a fixed 5.75% over 30 years on 200,000.

Thanks again for any help.

[java1]

hmmm...does the interest apply once to the initial payment and THAT is the amount that is distributed monthly over 30 years?

or

does the interest re-apply every year...because the amount that you owe is reduced every year

if the interest is re-applied...that could make a HUGE difference

[Coyboss]

Hi Newbie.

NOt exactly sure how all that works.

I am assuming for the purposes of the exercise, that the rate is fixed and is based on the principal at start of the loan.

IKE