Software of the Month Club 1997 March

home *** CD-ROM | disk | FTP | other *** search

/ Software of the Month Club 1997 March / Software of the Month Club 1997 March.iso / pc / dos / biz / solveit / features.com (.txt) < prev next >

Wrap

Asc2Com (MorganSoft) | 1995-06-12 | 26.3 KB | 447 lines

[rev. 06/12/95] SolveIt! Version 4.3 General Features SolveIt! is a general purpose financial calculator that is capable of answering many of the questions that you might have when it comes to money. Its features a VERY EASY to use user interface that asks a series of questions. You simply "fill-in-the-blanks" and press <F9> and the program will calculate the results. There is NEVER any need to do any programming. And all of the routines are accessed using an standard menu system. SolveIt! 4.3 is a MAJOR update. SolveIt! now sports a new, even easier to use, user interface. The user can more easily edit any of the inputs. The cursor keys can be used to go back and correct an entry even before you calculate the results. You can press <F1> at any time, and a help window will appear providing detailed information about the routine and the question that is being asked. For those who are not familiar with all of the concepts used in these routines, reading the help screens will be very educational. Extensive printing is available in version 4.3. Our routines are written to work with any printer. In fact, we have NEVER found a printer that SolveIt! does not support. Schedules can also be printed to disk so that you may later load them into your word processor. This will allow you to edit them or highlight important points. The professional user will appreciate the way that SolveIt! saves its data. All data for one client is kept in one file. This way, information on Mr. Samual's mortgage is available in the same file as his budget and net worth statements. There are too many changes to describe in this short flier, but suffice it to say that every single routine in SolveIt! has been greatly enhanced since version 3.1. As we developed SolveIt!, we gave two things over riding concern. First, the program had to be VERY easy to use. Even though an extensive manual is supplied, we hope that you never need to use it. And secondly, the program had to be fast. Therefore, data is easy to enter quickly and the program will often perform a calculation instantly. 1 The 30 Routines of SolveIt! 4.3 Future Value Calculates the future value of a single deposit or series of deposits. The interest rate may be changed at any time during the term. The deposits may be made in any amount either on a regular or irregular basis. The user also speci- fies a starting date, term, payment period, compounding period and whether the deposits are in advance or arrears. In addition to doing a quick future value calculation, this routine will do a schedule that shows the future value at the beginning or end of each period, as well as the deposit amount for the period (if any), the accumulated interest and the total principal. Present Value of an Amount Solves for the present value of a future amount. The routine prompts for the amount, the number of periods, the compound- ing frequency and the interest rate. Present Value of a Series Solves for the present value of a series of future payments. The payment amounts can be changed as well as the interest rate. Besides calculating a quick present value amount, this routine will also do a schedule that shows the individual payments, the value of the accumulating payments, the rate, and the running future and present values of the payments. Internal Rate of Return (New Routine) Takes a series of complicated cash flows and answers the question, "What is the rate of return on this deal?". You will be prompted to enter the initial investment and then the projected income from that investment as a series of positive or negative cash flows. The IRR result will tell you the return on your investment. Use this figure to com- pare what you could earn on your money using another invest- ment. Net Present Value Is an investment a good investment? Enter the minimum rate of return that is acceptable to you or your firm and then enter the cash flows that the investment will generate. If the NPV result is positive then the investment is exceeding your minimum requirement. On the other hand if it is nega- tive, it is not meeting your expectations. You may use this routine and the IRR for any investment from stocks and bonds to a capital investment in a plant. 2 Time To Withdrawal (Annuity Payout) Answers the question, "How long will an amount last assuming a regular withdrawal?" The amount withdrawn can be adjusted by an inflation factor. SolveIt! can calculate the results using either the Annuity Due or the Annuity in Advance Method. The user can also specify the payment and compound- ing periods. This routine reports not only the length of time that the funds will last, but also the total amount returned with interest, the net gain and the date of the last payment. A schedule can also be calculated. This schedule will show the payment amount, the interest for the period, the accumu- lated interest, the remaining balance and the total amount paid. Required Payment for a Future Sum Answers the question, "How much do I have to put away on a regular basis to reach some amount at a particular point in the future?" The routine asks the user for the interest rate, compounding periods, payment periods and the desired term. Besides calculating the required payment, SolveIt! also reports the total amount invested, the gain over the invested amount, the total years invested and how long it takes money to double at the prescribed scenario. Purchasing Power The Purchasing Power Routine looks at the value of money two ways. It calculates both the declining value and the equiva- lent value of an amount. The routine allows any amount to be entered and adjusted by any inflation rate over any period of time up to a maximum or 40 years. The inflation rate may be adjusted every year and the context sensitive help screen includes the percentage of change in the Consumer Price Index from 1960 through 1989. The equivalent purchasing power (constant dollars) will tell you how much money is equal in value to the original amount. The declining purchasing power tells you what the original amount is worth in current dollars. Equivalent Interest Rate Is it better to invest money at 8.25% compounded quarterly or 8.12% compounded monthly? This routine will tell you the equivalent rate to a given rate at a particular compounding period assuming a different rate of compounding. 3 Interest Rate Earned If you invested $10,000 in a venture that returned $18,900 after 8.5 years, what was the yield on your original invest- ment? This routine lets you look at money compounded 8 different ways. Loan Calculator You provide the Loan Calculator with three of the four standard loan variables, amount, term, interest rate or payment, and SolveIt! will solve for the unknown value. The routine also considers 8 different compound and payment periods and whether the payment is made in advance or ar- rears. Amortization Table The Amortization Routine is as powerful as any found in stand-alone amortization programs. The routine prompts you for the loan amount, the term, whether the loan is based upon a 360 or 365 day year, and the interest rate (or rates). This routine supports 8 different payment and com- pounding periods which may be set individually. (Choose from: daily, weekly, biweekly, monthly, bimonthly, quarter- ly, semiannually or annually.) You also get to select how the table will be displayed. That is, do you want the totals displayed based upon a calendar year, fiscal year or loan year. Finally, you provide the starting date, amortization method (Normal, Rules-of-78, Interest Only, Fixed Principal, or U.S. rule) and payment method (Arrears for standard loans or Advanced for leases). The resulting schedule will give both totals for the year displayed and from the origination date of the loan. The program will accept a change of interest rate (ARM) on any payment date. You may also skip payments. And you can make random or regular extra payments to be applied to principal. By pressing <S>, you will be able to summarize the loan through any period. That is, you will be shown the total amount of interest paid, total principal paid, the interest saved as the result of extra payments and the remaining balance. Finally, the Amortization Routine will also handle a loan that is being negatively amortized (i.e. accrued interest) over all or part of its term. 4 Balloon Payment The Balloon Payment will tell you what the periodic payment will be for a loan when you specify a loan amount, term, interest rate, payment method and period, compounding peri- od, balloon payment amount and balloon payment number. This gives you the power to design a loan to fit your criteria. Accelerated Payment While the Amortization Routine will calculate interest saved for random or regular extra payments of any amount, the Accelerated Payment Routine will very quickly solve for the interest saved and calculate the reduced term for a series of regularly paid extra payments. Remaining Balance Calculates the remaining balance of a loan after any pay- ment. Again, this is a very fast routine to use. You fill- in-the-blanks, and SolveIt! will instantly calculate the results. Nothing could be simpler. Loans can be paid using one of eight different payment periods and the loan may be compounded in one of eight different ways. Like the other loan routines, the payments may be paid either in advance or in arrears. Interest Due & Calendar Math (New Routine) The Interest Due Calculator is a new feature with SolveIt! 4.3. Using this routine, you will be able to calculate how much interest is due for any number of days or between any two dates. SolveIt! prompts you to enter either a starting date or ending date or the number of days. You enter any two of the three values. Then you enter the amount, interest rate, payment and compounding period. The routine will not only solve for how much interest is due, it will also tell the day of the week for the starting and ending dates. We can not imagine a more flexible interest due calculator than this one. If you are due interest today on a financial instrument that you know you had to hold for 45 days, just enter today's date as the ending date, and 45 days for the term and SolveIt! will tell you the date that the financial instrument was purchased on as well as the interest due you. Since this routine calculates the starting date, you can compare the calculation with the date you actually bought the security. This enables you to check to make sure that the term was actually 45 days and not 46 or 47 days. This routine supports both long and short periods as defined by The U.S. Government's Truth-In-Lending Act, Regulation Z, Appendix J. Therefore it is also a handy routine to use to calculate how much interest is due on a loan when a loan is being paid off on other than a payment due date. 5 Gross Profit Margin If you are a stock and bond trader or in a retail wholesale business, and you want to see what the gross profit is for a series of trades or sales, then this routine will handle the task for you. You enter quantities and cash flows for amounts spent and received. The program will calculate the gross profit, total cost and total revenue as well as the return on investment and gross profit margin. This routine is particularly handy if you are a trader who might buy 1,000 units of an item at one price and then sell the 1,000 units at different prices over many different transactions. Of course the Gross Profit Margin routine will allow you to do many different purchases of an item at different prices as well. Believe us, as traders, when we tell you that this routine is by far easier to use than your desk top calculator for all but the very simplest sales transactions. Weighted Average and Analysis This routine will take the values from the Gross Profit Margin routine and do some basic analysis on the numbers such as weighted averages, minimum and maximum values on both the costs and the revenue. You are also given the opportunity to key in a new set of values or to edit the existing values. Break Even Analysis In a matter of seconds you will be able to determine not only the break even point for any business or department but also the gross sales needed to achieve break even. Gross sales at break even is an important concept. For often a new business person will achieve a large cash flow, but he will not be aware of future payables and therefore redirect cash flow out of the business. By using this routine, you can determine not only the number of units that need to be sold or the number of hours billed to break even but also what level of gross sales you need to have to be at break even. Sometimes it is more difficult to track inventory or hours billed, than it is to track the gross income of a business. By using this routine and know- ing your gross sales, you will be able to calculate whether you are below, at, or above break even. This routine prompts you for a series of fixed costs, vari- able costs and if applicable for a series of costs associat- ed with the product or products sold. In addition to a break even figure and gross sales at break even, fixed, variable and material costs are reported as a percentage of sales. 6 Economic Ordering Quantity (EOQ) If you buy large quantities of an item, this routine will tell you the most economical quantity to buy considering your overhead costs and the time value of money. Use this routine to do a quick check to see if you are over or under ordering. Remember, inventory costs can kill. Affordable House If you use this routine you will very quickly know how much you can afford to spend on a home given your life style. The routine asks you for your gross annual income, the cash you have available for a down payment, the term of the mortgage, the interest rate plus the estimated taxes, insurance, and maintenance. Finally, you are asked what percentage of your gross income you want to devote toward housing. SolveIt! calculates the total price of a home that you can afford, the amount of financing needed and what percentage the cash available is of the total house price so you can see if the terms for the downpayment of the lending institution are met. Second Mortgage Calculator Often, when one property is being sold and a second property is being bought, a short term bridge loan is needed since the proceeds from the first sale are not available when it is time to close on the second property. This routine will calculate the first and second mortgage payment. It is assumed that the second mortgage is only a short term loan on which only interest is being paid. Rental Income Analysis This routine will do a very complete analysis of income derived from rental units. It looks at variables such as the purchase price of the property, your tax bracket, monthly expenses, percentage occupied and property tax to name a few. SolveIt! allows you to assume different inflation rates for maintenance, rent and property tax increases. The rou- tine will calculate mortgage costs using one of three meth- ods for one or two mortgages. Depreciation, business use percentage and useful life are also considered. The bottom line result will be the profitability of the property. A cash flow schedule is also generated by the program show- ing the cash flow before and after tax considerations. 7 Budget The budget routine will now allow you to work with both protected and actual income and expenses. You can work with up to six different categories of income and thirty one categories of expenses. The description for each income and expense may be change by the user so that the budget may be set up for an individual, a small business or a department in a large corporation. The routine tracks income and expenses over any twelve month period and generates several cash flow reports. Totals for all items are reported on a twelve month basis as well. A report comparing Actual figures as a percentage of the projected figures is generated without any rekeying of data. Net Worth This routine will calculate an individuals net worth. Often, a borrower will have to present a net worth statement to a bank when seeking a loan. This routine will perform such a calculation in a matter of seconds. Just spend a few minutes filling in the values that SolveIt! is asking for such as the value of your car, cash in the bank, credit card balanc- es, etc. And it will tell you your net worth as fast as you can press the <F9> key. MACRS Depreciation The routine displays a depreciation schedule using the method as defined by the 1986 tax law. All data from the IRS's tables are include in the program so there is no need to use the government's tables. And in fact, if you have questions about depreciation, the help screens are a handy reference tool for they quote liberally from IRS Publication 534. SolveIt! supports all conventions and both the Acceler- ated Method as well as the Alternate Straight Line method of depreciation. ACRS Depreciation (New Routine) If you have an asset placed into service before 1987, then you probably need to depreciate the asset using this method as defined by the federal government. Other Depreciation Routines SolveIt! also supports three other generally used methods of depreciation. They are the Straight Line Method, the Sum-of- Years-Digits Method and the Declining Balance Method. **************** SOLVEIT! v. 4.3 added Bond yield and value routines. These routines will allow you to compare up to 3 bonds at one time. You may also optionally factor in taxes and/or inflation. Pine Grove Software 800-242-9192 609-730-1430 8