Amortization Schedule

You have been hired as a Java programmer to generate an amortization schedule. This program should be in the form of a Java applet. Inquiries will be Web-based using a browser. Your program should execute within the browser and prompt the user for three different inputs. The first is the loan amount, the second is the length of the loan and the last is the annual interest rate. Your task is to write a Java applet that will provide the user with their payment schedule. This amortization schedule would include their monthly payment amount, interest amount, principal amount and their remaining balance per pay period.

The applet input will be the loan amount, annual percentage rate (APR), and the number of years to pay out the loan. The output will be the loan amount, interest rate per pay period number of pay periods and the monthly payment. This information would be followed by the amortization schedule. Following is an example of the expected output for a $20,000 loan over 5 years at 6.25% interest rate. See image for sample output.

The necessary calculations were provided to you:

• p,loan amount or principal
• n,number of payments = payments per year * number of years
• i,interest rate per pay period = APR/payments per year = APR/12
• t,interest paid = interest rate per pay period * previous principal balance
• r,monthly payment amount = principal * interest per period / (1-(1+(interest per period)/100)^(number of payments-1)^2)
• a, principle amount = monthly payment amount – interest paid
• b, principle balance = previous balance – principle amount

Hint: In Java syntax the monthly payment calculation is:

r=((p*(i/100))/(1-(Math.pow((1+(i/100)),(n*(-1))))));

Details

Please note that your program should accept three inputs:

• The loan amount,
• Annual Percentage Rate, and
• The number of years to pay out the loan

And calculate six types of outputs:

• The monthly payment amount,
• Interest per pay period,
• Number of pay periods,
• Amortization schedule (including amount of interest per pay period, principal per pay period, and principle balance)

When coding your applet, remember the following:

• Your applet needs to extend the Applet (or JApplet) class. Of course, you need to import the appropriate applet package(s).
• Your applet needs to have declarations for the fields, labels, components, widgets,etc. that you use in the applet.
• There are applet methods that are called automatically by browsers (please see your textbook). Make sure you initialize (implement init()) your applet.
• You need the code that does the calculation of the interest.
• You need to handle the event of pressing the button. There are some examples in the book (ask your instructor for the specific pages).
• You may use this sample code for example. See sample code.