Loan negotiation is usually not a straightforward task. A type of loan is the discount installment loan. This type of loan has the following characteristics. Supposing a loan has
face value of GHC 1000, interest is 10% and the duration is 24 months. The interest is
compounded by multiplying the face value by 0.12 to produce GHC 120. The figure (120) is
then multiplied by the loan period of 2 years to give GHC 240 as the total interest owed. This
amount is immediately deducted from the face value leaving the customer with only GHC
760. Repayment is then made in monthly equal installments based on the face value. This
means that the monthly payment will be GHC 1000 divided by 24 which is approximately
41.67. This method of calculating the monthly repayment is not too bad if the consumer
needs only GHC 760 but the calculation is a bit complicated if the consumer needs GHC
1000.
a. Write a program that will take 3 inputs
1. The amount the consumer needs
2. The interest rate
3. The duration of the loan in months. (6 marks)
b. The program should then calculate the face value required in order for the consumer
to receive the amount needed. (7 marks)
c. Your program should also calculate the monthly payment (6 marks)
d. The program should also allow the calculations to be repeated as often as the user
wishes and explain the part of the part of the code that is allowing the repetition. (6
marks)