How can one effectively incorporate various calculations into a PHP program for loan calculations?

To effectively incorporate various calculations into a PHP program for loan calculations, you can create functions for each calculation and then call these functions as needed in your main program. This modular approach helps to keep your code organized and makes it easier to update or modify specific calculations in the future. 

<?php

// Function to calculate monthly loan payment
function calculateMonthlyPayment($loanAmount, $interestRate, $loanTerm) {
    $monthlyInterestRate = $interestRate / 1200;
    $monthlyPayment = ($loanAmount * $monthlyInterestRate) / (1 - pow(1 + $monthlyInterestRate, -$loanTerm));
    return $monthlyPayment;
}

// Function to calculate total interest paid over the loan term
function calculateTotalInterest($monthlyPayment, $loanAmount, $loanTerm) {
    $totalInterest = ($monthlyPayment * $loanTerm) - $loanAmount;
    return $totalInterest;
}

// Function to calculate total amount paid over the loan term
function calculateTotalAmountPaid($monthlyPayment, $loanTerm) {
    $totalAmountPaid = $monthlyPayment * $loanTerm;
    return $totalAmountPaid;
}

// Example usage
$loanAmount = 10000;
$interestRate = 5;
$loanTerm = 36;

$monthlyPayment = calculateMonthlyPayment($loanAmount, $interestRate, $loanTerm);
$totalInterest = calculateTotalInterest($monthlyPayment, $loanAmount, $loanTerm);
$totalAmountPaid = calculateTotalAmountPaid($monthlyPayment, $loanTerm);

echo "Monthly Payment: $" . number_format($monthlyPayment, 2) . "\n";
echo "Total Interest Paid: $" . number_format($totalInterest, 2) . "\n";
echo "Total Amount Paid: $" . number_format($totalAmountPaid, 2) . "\n";

?>

Keywords

PHP loan calculations calculations functions libraries

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