Question

USING MATLAB:

A simple mortgage calculator that will output the monthly payment, the remaining balance, and plot graph

Answer 1

function mortgage_calculator

years=10;

annual_rate=0.03; % 3% annual interest rate

house_value=100000;

downpayment=0.20; % 20% down

loan_size=house_value*(1-downpayment);

[P,In,Ba]=compute_mortgage(loan_size,annual_rate,years);

% close all

fprintf('Monthly payment: %1.2f \nTotal Interest Paid: %1.2f\n',P,sum(In));

figure;

Ps=P-In;

plot((1:len(Ps))/12,Ps/P,(1:len(In))/12,In/P);

title('Fractions of principal and interest paid at each period');

xlabel('Year');

ylabel('Fractions');

legend('Principal fraction','interest fraction');

figure;

plot((1:length(Ba))/12, Ba);

title('Remaining balance');

xlabel('Period');

ylabel('Remaining balance');