This demonstration shows how JWAVE can be applied to perform loan or mortgage analysis. The demonstration highlights the ability to calculate and display:

1. Principal paid
2. Interest costs
3. A monthly payment analysis tool

The gold areas on the principal and interest plots indicate the optimized payment plans. The 3-D plot allows you to view the relationship between your loan amount and interest rate for a specific monthly payment.

Directions:

1. Type the amount of money you wish to finance in the "Loan Amount" text field.
2. Type the interest rate you wish to finance at in the "Interest Rate" text field.
3. Type the number of years you wish to finance the loan in the "Number of Years" text field.
4. If you wish the program to automatically calculate the loan payment for you, select "Calculate Monthly Payment for Me" in the dropdown list box. Then the program will automatically calculate the optimal interest rate for you and display the plots accordingly.

   Otherwise, select "Use This Monthly Payment" from the dropdown list box and type in a monthly payment value of your choice in the text field below. This will display the total interest accrued over the life of the loan based on this payment value. You will notice that if you type in a monthly payment, the "Principal Paid" plot and the "Interest Cost" plot will display differences between the optimized payment and your payment.

5. Press the "Update Plot" button to update the plot. Anytime you make a change, you must press this button to update the plot.
6. Press the "Help" button to display help about how to use this demo.