Basic Banking

The Basic Banking npm package provides several built-in calculations related to banking and finance. This document explains the available functions, their inputs, and example function returns.

Installation

To use the Basic Banking package, you can install it via npm:

npm install basic-banking

Usage

Import the package in your JavaScript file:

const basicBanking = require('basic-banking');

Functions

calculateCompoundInterest(principal, interestRate, compoundingPeriods, years)

Calculates the compound interest on a principal based on compounding periods and amount of years.

Inputs:

• principal (number): The principal investment amount.
• interestRate (number): The annual interest rate (in decimal form).
• compoundingPeriods (number): The number of compounding periods per year.
• years (number): The duration of the investment in years.

Example:

const result = basicBanking.calculateCompoundInterest(1000, 0.05, 12, 5);
console.log(result.compoundedInterest); // Output: 1283.63
console.log(result.interest); // Output: 283.63

calculateLoanRepayment(principal, interestRate, loanTerm)

Calculates the monthly repayment amount for a fixed-rate loan.

Inputs:

• principal (number): The principal loan amount.
• interestRate (number): The annual interest rate (in decimal form).
• loanTerm (number): The duration of the loan in years.

Example:

const result = basicBanking.calculateCompoundInterest(1000, 0.05, 12, 5);
console.log(result.compoundedInterest); // Output: 1283.63
console.log(result.interest); // Output: 283.63

calculateMortgagePayment (principal, interestRate, loanTerm, propertyTaxRate, insurance)

Calculates the monthly mortgage payment amount, including property tax and insurance.

Inputs:

• principal (number): The mortgage principal amount.
• interestRate (number): The annual interest rate (in decimal form).
• loanTerm (number): The duration of the mortgage in years.
• propertyTax (number): The annual property tax amount.
• insurance (number): The annual insurance amoun

Example:

const monthlyPayment = basicBanking.calculateMortgagePayment(200000, 0.04, 30, 300, 100);
console.log(monthlyPayment); // Output: 1095.84

Warnings

• The Basic Banking package is not intended to be used for financial advice. The package is intended to be used for educational purposes only.
• These calculations are simplified examples and may not consider all real-world scenarios.