Question

• Suppose that Gomez takes out a loan for $22,000 to buy a new SUV (after trading in his car). The bank charges 6% annual interest on the unpaid balance, compounded monthly (that's 0.5% interest each month). If Gomez pays $300 at the end of each month, how many months will it take him to pay off his loan (name the variable m)? What is the amount of his last payment (name the variable last_instalment)? His last payment will just cover the unpaid balance so will likely be less than $300.
• If, in writing a while loop to solve this problem you accidentally typed 220000 (rather than 22000); i.e., you added an extra zero to the loan amount. Explain what would happen. If you don't know what would happen, try it out and then explain (use comment lines to write the answer).

Correct answers are: m = 92, last_instalment = 174.14)

Answer 1

Note: Done accordingly. Please comment for any problem. Please Uprate. Thanks.

Code:

void main(){
   int m=0;
   double p=220000;
   double rate=0.5;
   double amount=p;
   double last=0;
   while(amount>0){
       amount=amount*(1+rate/100);
       amount=amount-300;
       m++;
   }
   printf("Months: %d\nlast_instalment: %0.2lf\n",m,(300+amount));
   //Accidently making p=220000
   //for first month interest = 220000*0.005=1100 which is greater than payment
   //so this will go to infinite loop

}

Output: