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KenanCross
02-12-2012, 10:38 PM
Hello again! Thanks for the help in the previous post I made last week. I'm in need of a little bit of assistance again.

I'm trying to get Math.pow to calculate and produce a result for my Mortgage Calculator project. I need to show a decreasing amount in the remaining balance of a mortgage loan. However the results I get seem to always stay the same. What am I doing wrong?

import java.text.DecimalFormat;
// This calculator will accurately calculate Mortgage Payments, while allowing for flexible variable adjustments
//(i.e. Length of Payments, Principal, Interest.) Based on Service Request from McBride Financial

// Author: Kenan Cross //

public class MortgageCalculator {
int i; // counter
int termLimit = 30;
int months;
int payments; /* No. of monthly payments in mortgage*/
int monthsPd = 12 * i; //Calculations of months paid so far
double balPd; //Part of Balance Paid Formula
double balPd2; //Part of Balance Paid Formula
double balPd3; //Part of Balance Paid formula
double balPdCalc; //Calculated result of balPd and balPd2
double loanCalc; //Power of Calculation for compound interest
double powCalc; //Power of calculation variable
double rate;
double loanBalance;
double loanInterest; //Calculated Loan with Interest
double newLoanBalance; //Calculated Remaining Loan Balanace
double annualRate; //Computed Annual Rate
double interestPlus; // rate + 1
double interestPd; // contains interest paid so far
double interestExp;
int length; /* length of mortgage */
double principle; /* Principle loan amount */
double monthlyPayment; /* Calculated Monthly Payment */
DecimalFormat dec;
DecimalFormat percentage;

public static void main (String args[]){
MortgageCalculator calc = new MortgageCalculator();
calc.calculatePaymentAmount();
calc.printPaymentAmount();
}

public MortgageCalculator(){
months = 12;
rate = 0.0575;
principle = 200000;
length = 30;
dec = new DecimalFormat ("\$0.00");
percentage = new DecimalFormat("0.00%");
}

public void calculatePaymentAmount(){
annualRate = ((rate)/(12));
payments = (months) * (length);
interestPlus = (rate + 1);
monthlyPayment = principle * (annualRate * interestExp)/(interestExp - 1);
}
//Above formula is based on M=P[i(1+i)^n]/[(1+i)^n-1] found on ifitbreaks.com/interest.htm//
public void printPaymentAmount (){
System.out.println("Your Loan Amount is "+ dec.format(principle));
System.out.println("Your Annual Rate is "+ percentage.format(rate));
System.out.println("Your monthly payment amount is " + dec.format (monthlyPayment));
System.out.println("Your principal balance with interest is " + dec.format (loanCalc));
for (i=1; i <= termLimit; i++){
//Loop set for the limit of Mortgage term
powCalc = principle * (Math.pow(interestAdj, i))-1;
balPd = monthlyPayment/annualRate;
balPd2 = balPd - principle;
balPd3 = 1 - Math.pow(annualRate, monthsPd);
balPdCalc = balPd - (balPd2 * balPd3);
//formula is based on Amt Paid = (L/R - P)[(1+R)^X - 1] found
// at http://www.infobarrel.com/Financial_Math:__Calculating_the_Mortgage_Balance_after_X_Number_of_Years
interestPd = powCalc - principle;
System.out.println("\tIn Year " + i + " you will have paid " + dec.format(interestPd) + " in interest.");
System.out.println("\t Your remaining loan balance is " + dec.format(balPdCalc));
try {
}
catch (InterruptedException e) {
}
}
}
}

clinto
02-15-2012, 07:18 PM
One thing that is happening is your monthsPd variable is being initialized at 12 * i; and never changes through each iteration. You want to move it into your for loop.

for (i=1; i <= termLimit; i++){
//Loop set for the limit of Mortgage term
monthsPd = 12 * i;

Based on the formulas I see on http://www.infobarrel.com/Financial_Math:__Calculating_the_Mortgage_Balance_after_X_Number_of_Years I came up with this code:

double amtPaid = (monthlyPayment/annualRate - principle) * (Math.pow(1 + annualRate, monthsPd) - 1);
double mortgageBalance = loanCalc - amtPaid;

You would then print mortgageBalance.

System.out.println("\t Your remaining loan balance is " + dec.format(mortgageBalance));