This assignment is derived from an assignment of Professor Koffman.
Write a class to represent Certificates of Deposit (CDs). There are two
types of CDs, redeemable (R) and non-redeemable (N).
The kind of CD, term, and value of the CD are provided as data.
For redeemable CDs the interest rate is 3.5% for a 1 year CD and 5%
for any term over 1 year.
For non-redeemable CDs the interest rate is 4% for a 1 year CD and 5.5%
for any period over 1 year. [The period of time you hold a CD, called the
term, will be 1 year, or 2 years, etc. never a fraction of years.]
Also, if the CD has value equal or more than $5000, the interest rate
should be bumped up by 0.25%. If it is for equal or more than $10000,
bump the interest rate up by 0.5%. [Note: if I have a $2000 one year
redeemable CD I get 3.5% interest; if you have a $6000 one year
redeemable CD you get 3.75% interest; if he has an $11000 one year
redeemable CD he gets 4% interest.]
Your class should store all the data about a CD (type - a character, value - a double, and term - an integer) as instance data members. Provide all appropriate methods for the class (constructors, accessors, setters, toString, equals, clone).
Provide the method public static CD readCD(); that prompts the user to enter the required information for a CD [the term (number of years - an integer), deposit value (double), and the kind of CD (R for redeemable, and N for non-redeemable)] and returns the corresponding CD [This is the same idea as readFraction which we did in the past.].
Provide a method getAnnualInterest that calculates the interest for one year for a given amount, type and term.
Use the class Pair to represent as a pair of doubles
class Pair
{
public double first;
public double secondt;
public Pair(){}
public Pair(int f, int s) {first = f; second = s;}
}
Provide a method
public Pair[] calcCompoundInterest()
that calculates the Annual interest
if the CD is kept for its full term. It returns an
array that in position 0 holds as a Pair the initial value of the interest (i.e. 0.0)
and the initial value
of the CD, in position 1 holds as a Pair the interest accrued in the first
year and the value at
the end of the first year, in position 2 holds as a Pair the interest
accrued in the second year and the value at the end of the second year, etc.
Remember, the value of the CD at the end of a year is : end value
= start value + interest for the year. The end value for year n becomes
the start value for year n+1. Use getAnnualInterest to calculate the interest for each year.
Beware that since the value of a CD changes because of the accumulation
of interest, the interest rate may also change because the value of the CD
may move beyond $5000 or beyond $10000
Provide a method
public double[] calcRDifference()
that calculates the difference in total
values for a given CD depending if it is Redeemable or Non-redeemable. [It
shows how much you gain by being non-redeemable.] At position 0 holds 0.0;
at position 1 holds the difference in values at the end of one year depending if the CD is
non-redeemable or redeemable; at position 2 holds the total difference in values at the end of two
years depending if the CD is non-redeemable or redmable; etc.
The program in a loop should prompt the user to define a CD and terminate when the
value entered for the CD is 0. Then for a CD the program will display first the definition of the
CD, then use the results of calcCompoundInterest to display for the duration of a CD its
total interest and CD value, then
use the results of calcRdifference to display each year the gain of choosing a non-redeemable
instead of a redeemable CD.
For example for a CD
your output could look something like this (note this is just to show the
form of the example).
CD with: Value = $5,500, Term = 2 years, Kind = Non-Redeemable, InterestRate = 5.75% year Annual interest CD value 0 0.00 5500.00 1 316.25 5816.25 2 334.43 6150.68 year Difference in interest 0 0.00 1 27.50 2 58.02 By having a non-redeemable instead of redeemable CD you gain in total 58.025 dollars.