Extra Credit Assignment 3: Loan Calculator Java Implementation Source Code

Problem Description
The monthly payments for a given loan are divided into amounts that apply to the principal and to the interest. For example, if you make a monthly payment of \$500, only a portion of the \$500 goes to the principal and the remainder is the interest payment. The monthly interest is computed by multiplying the monthly interest rate by the unpaid balance. The monthly payment minus the monthly interest is the amount applied to the principal. The following table is the sample loan payment schedule for a one-year loan of \$5,000 with a 12 percent annual interest rate. The monthly payment would be \$444.24.

Write an application that accepts a loan amount, annual interest rate, and loan period (in number of years) and displays a table with five columns: payment number, the interest and principal paid for that month, the remaining balance after the payment, and the total interest paid to date. Note: The last payment is generally different from the monthly payment, and your application should print out the correct amount for the last payment. Use a formatter to align the output values neatly. If the input values are invalid, then print out an appropriate error message. Decide on the range of valid values for the loan amount, interest rate, and loan period.

The objectives of this extra credit assignment:

1. Understand the concept of object-oriented programming.

2. Understand the concepts of repetition statements.

3. Understand the use of standard Java classes.

4. Familiarize with code documentation, compilation, and execution.

5. Expose to Java syntax, programming styles, and Java classes.