Computer Program #3

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=50 BGCOLOR="#CC0000" TEXT="#080000"> <div> <B>Computer Program #3</B></div> <div> </div> </td> </tr><tr> <td valign="top" width=165 BGCOLOR="#0066FF" TEXT="#080000"> <div> <B> <TABLE BORDER="0" CELLPADDING="2" CELLSPACING="1" WIDTH="132" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 35 ><NOBR><div> <A HREF="id11.htm" TARGET="_top" TITLE="Computer Program 2"><U><B><IMG SRC="007151d0.gif" border=0 width="21" height="29" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></U></A></div> </NOBR></tD> <tD VALIGN=TOP><NOBR><div> <A HREF="id13.htm" TARGET="_top" TITLE="Computer Program 4"><U><B><IMG SRC="008151d0.gif" border=0 width="21" height="29" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></U></A></div> </NOBR></tD> <tD VALIGN=TOP WIDTH="20"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="20" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP><NOBR><div> <A HREF="id2.htm" TARGET="_top" TITLE="Course Calendar"><U><B><IMG SRC="00d0d1d0.gif" border=0 width="13" height="29" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></U></A></div> </NOBR></tD> <tD VALIGN=TOP><NOBR><div> <IMG BORDER="0" SRC="1x1.gif" HEIGHT="29" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" WIDTH="27"></div> </NOBR></tD> </tR> </TABLE></B></div> <div> <A HREF="id10.htm" TARGET="_top" TITLE="Computer Program 1"><U>Computer Program #1</U></A></div> <div> <A HREF="id11.htm" TARGET="_top" TITLE="Computer Program 2"><U>Computer Program #2</U></A></div> <div> <B>Computer Program #3</B></div> <div> <A HREF="id13.htm" TARGET="_top" TITLE="Computer Program 4"><U>Computer Program #4</U></A></div> <div> <A HREF="id14.htm" TARGET="_top" TITLE="Computer Program 5"><U>Computer Program #5</U></A></div> <div> <A HREF="id15.htm" TARGET="_top" TITLE="Computer Program 6"><U>Computer Program #6</U></A></div> <div> <A HREF="id16.htm" TARGET="_top" TITLE="Computer Program 7"><U>Computer Program #7</U></A></div> <div> <A HREF="id18.htm" TARGET="_top" TITLE="Computer Program 8"><U>Computer Program #8</U></A></div> </td> <td valign="top" height=430 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> Engineers must be aware of some basic concepts of finance in order to be certain that their projects are economically justifiable. One simple calculation is to determine the periodic payment required to pay off a loan over a fixed period at a constant interest rate. The formula for determining the amount of this payment is given by the following equation:</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="01c6c2f0.gif" border=0 width="108" height="47" ALT="Microsoft Equation 3.0" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> where,</div> <div> <I>A</I> is the amount of the payment,</div> <div> <I>n</I> is the number of time periods over which the payment is to be made,</div> <div> <I>P</I> is the original principal amount,</div> <div> <I>i</I> is the periodic interest rate (annual interest rate divided by the number of payments per year).</div> <div> Each payment must cover the interest due on the current remaining balance of the loan, plus repayment of some of the principal. An amortization schedule is a table showing how the loan will be paid off over time and usually includes columns containing how much of each periodic payment is going towards interest and how much is going towards reduction of principal, the cumulative amount of interest paid, and the remaining principal balance.</div> <div> Suppose your company needs to purchase a new piece of heavy equipment that costs $650,000 and has an expected life of 10 years, at which time it will have no salvage value. Your company can borrow the required money at an annual interest rate of 8.5%. Under one possible arrangement, your company will make 10 annual payments while an alternate plan requires 120 monthly payments.</div> <div> Write a C++ program that will compare these two alternatives. Use the formula given above to calculate the periodic payment for both cases, then prepare an amortization schedule for both loan arrangements. Compare the total interest costs for the two arrangements.</div> <div> <I>Caution:</I> Remember that the smallest unit of currency is the penny.</div> </td> </tr></table></body>