Description
Objective
To build a complete working Java program that applies control structures and file processing.
Overview & Instructions
As a banker, you are responsible for reviewing
Input consists of a file of raw loan data (named loandata.txt) in the following format:
{name} {principal) {term} {annualRate} {creditRating} {fee-optional}
Example data could be:
SMITH 20000 5 4.5 750
JOHNSON 18000 4 4.2 560 2.0
The principal amount is the loan request in dollars. The term is the duration of the loan in years. Note that
some loan applicants with a low credit score (under 580) will be required to pay an up-front fee. In the
example above, it implies that the customer would need to pay 2.0% of the $18,000 requested principal for
the added risk to the bank for taking on the risky loan. For any loan applications without this field, simply list
the fee as $0.00.
The formula for calculating monthly payment for a loan is:
r(PV) P
1 – (1+r)-
P = Payment
PV = Present Value
r = rate per period
n = number of periods
Note that the “periods” of the formula above are months. Therefore, be sure to convert n to months and
furthermore define the rate r as a monthly rate (i.e. annualRate / 12.0).
The loan payoff amount will be calculated as the monthly payment multiplied by the number of overall
months of the loan. This is the amount the bank receives in total back from the borrower.
