The Business Master (3rd Edition)

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

/ The Business Master (3rd Edition) / The Business Master (3rd Edition).iso / files / finacial / zcalc / zcalc.man < prev

Wrap

Text File | 1989-03-25 | 44.6 KB | 1,270 lines

THIS MANUAL WAS DEVELOPED FOR DESKTOP PUBLISHING ON THE hp LaserJet PRINTER. CONVERTING IT TO PRINT ON AN ASCII TEXT PRINTER ELIMINATES ABOUT 98% OF ITS APPEAL. ALL THE DATA IS HERE SO THAT YOU CAN ADEQUATELY ASSESS THE PROGRAM'S USEFULNESS TO YOU. THE REGISTERED VERSION IS SHIPPED WITH THE LAZER MANUAL! Instruction Manual ZCALC Regulation Z Installment Loan Calculator Vers 1.04 Bottom Line Software P. O. Box 1804 Burleson, Texas 76028-1804 817-447-5524 February 1988 TABLE OF CONTENTS License agreement and warranty . . . . . . . . . . . . . . . . . . 1 Disk contents . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Automatic Installation . . . . . . . . . . . . . . . . . . . . . . 3 Manual installation . . . . . . . . . . . . . . . . . . . . . . . . 4 If you have trouble reading the screen . . . . . . . . . . . . . . 4 How to start the program . . . . . . . . . . . . . . . . . . . . . 5 Screens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Menus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Using menus . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Entering loan data on the screen . . . . . . . . . . . . . . . . . 8 Amount advanced . . . . . . . . . . . . . . . . . . . . . . . 8 Previous balance . . . . . . . . . . . . . . . . . . . . . . . 8 Rate, (APR) . . . . . . . . . . . . . . . . . . . . . . . . . 8 Entering dates . . . . . . . . . . . . . . . . . . . . . . . . 9 Date of note . . . . . . . . . . . . . . . . . . . . . . 9 Date of first payment . . . . . . . . . . . . . . . . . . 10 Official fees . . . . . . . . . . . . . . . . . . . . . . . . 10 Other fees . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Credit life premium and A/H premium . . . . . . . . . . . . . . . 10 Days to first payment . . . . . . . . . . . . . . . . . . . . 11 Odd days interest . . . . . . . . . . . . . . . . . . . . . . . . . 11 Selecting menu options . . . . . . . . . . . . . . . . . . . . . . 12 Zcalc printed report . . . . . . . . . . . . . . . . . . . . . . . 12 How to read the report . . . . . . . . . . . . . . . . . . . . . . 14 Amount advanced . . . . . . . . . . . . . . . . . . . . . . . 14 Previous Balance . . . . . . . . . . . . . . . . . . . . . . . 14 Official fees . . . . . . . . . . . . . . . . . . . . . . . . 14 Origination fee (adds to APR) . . . . . . . . . . . . . . . . 14 Credit life premium . . . . . . . . . . . . . . . . . . . . . 14 A&H premium . . . . . . . . . . . . . . . . . . . . . . . . . 14 Total amount financed . . . . . . . . . . . . . . . . . . . . 14 Total finance charge . . . . . . . . . . . . . . . . . . . . . 15 Total of payments . . . . . . . . . . . . . . . . . . . . . . 15 Number of regular payments . . . . . . . . . . . . . . . . . . 15 Amount of regular payment . . . . . . . . . . . . . . . . . . 15 Amount of final payment . . . . . . . . . . . . . . . . . . . 15 Quoted rate . . . . . . . . . . . . . . . . . . . . . . . . . 15 Actual rate (APR) . . . . . . . . . . . . . . . . . . . . . . 16 Date of note . . . . . . . . . . . . . . . . . . . . . . . . . 16 Date of first payment . . . . . . . . . . . . . . . . . . . . 16 Date of last payment . . . . . . . . . . . . . . . . . . . . 17 Days to first payment . . . . . . . . . . . . . . . . . . . . 17 Days to last payment . . . . . . . . . . . . . . . . . . . . . 17 Fractional period, per RegZ . . . . . . . . . . . . . . . . . 17 Odd days interest charged . . . . . . . . . . . . . . . . . . 17 Payments per year . . . . . . . . . . . . . . . . . . . . . . 17 Balloon at payment number . . . . . . . . . . . . . . . . . . 17 Balloon principal payment . . . . . . . . . . . . . . . . . . 18 Balloon interest payment . . . . . . . . . . . . . . . . . . . 18 Balloon total payment . . . . . . . . . . . . . . . . . . . . 18 Balloon CL prem level part . . . . . . . . . . . . . . . . . . 18 Balloon CL prem decreasing part . . . . . . . . . . . . . . . 18 Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 vers 1.0x - Texas . . . . . . . . . . . . . . . . . . . . . . 19 License agreement and warranty I have read and agree to the following license agreement. The program and the users manual contain valuable intellectual property and trade secrets of Bottom Line Financial Software, Inc. I understand that I may make as many copies as I want for backup but I will not sell, rent, loan, give or otherwise transfer possession of any copy of the program or of any other materials supplied to any person or other entity. I am authorized to use this program simultaneously on all the computers at a single location. If I have branch offices, drive in offices, mini lobbies, or other facilities that are not physically connected, each of these facilities is required to purchase a separate license. This product is supplied with only one warranty. Within 15 days of receipt, if this product fails to perform any advertised function, I may return it postage prepaid, with a printout of any erroneous result, or a written description of the advertised function which failed, for a full refund. Computer rounding differences are not considered to be erroneous operation. Bottom Line Financial Software, Inc. disclaims any other warranty expressed or implied, including without limitation, the warranties of merchantability or fitness for any purpose. ZCALC consumer installment loan calculator page 1 ZCALC is a consumer loan calculator. It performs the same function as the programmable calculators available from many calculator manufacturers. ZCALC however runs as a program on your IBM-PC or compatible computer. You can have a copy for each officer or secretary who has access to a PC. Much more convenient and affordable than buying additional calculators. Your license agreement allows you to make as many copies as you need for use in your own shop. ZCALC computes odd periods to first payment, credit life and A&H premiums. Disk contents The disk you receive will contain the following files: ZCALC.EXE The program file. MENU.BAT The batch file to print the menu. MENU.SCR The actual menu. 1.BAT Batch files to execute the menu 2.BAT options with the corresponding . number. . N.BAT ?.DOC A file containing data to be displayed on the screen by a batch file. ZCALC consumer installment loan calculator page 2 Automatic Installation The ZCALC distribution disk contains software to install the program for you. You may access this software through the installation menu. 0) <return> means press the return or enter key. 1) Place the distribution disk in drive A: 2) Log on to drive A: using the command: A:<return> 3) Type the command: menu<return> You will be presented this menu: 1) Run ZCALC the Reg Z loan calculator. 2) Install ZCALC on the floppy in drive B: 3) Install ZCALC on the hard drive C: 4) Install Zcalc on the floppy in drive B: (mono) 5) Install ZCALC on the hard drive C: (mono) 6) If you have trouble reading the Zcalc screen Type menu selection, then <Return> Note that option 4) and 5) refer to mono (monochrome) versions. These versions are for machines with no color capability. They are exactly the same program as the versions installed by option 2) and 3). The only difference is that they are started by a batch file which instructs the program to convert all screen output to black and white. ZCALC consumer installment loan calculator page 3 Select the installation option that matches your computer. If you have a monochrome monitor and a color graphics card, you may or may not be able to use the color version. The monochrome version ignores the hardware configuration and converts all colors to black and white. It should work on any computer. The actual installation process is very simple and takes only a few seconds. You will be asked to verify that your disks are in the correct drives and then the computer will install ZCALC to your floppy disk or your hard drive. Manual installation ZCALC comes to you on a non copy protected diskette. The first thing you must do is to copy the program your work disk. NEVER USE THE ORIGINAL DISKETTE FOR ANYTHING BUT MAKING COPIES! Only one file is required for the ZCALC program to operate, the program file ZCALC.EXE. You may copy this file to a floppy disk or to any subdirectory of your hard disk. If you have two floppy disks and no hard disk, copy the contents of the distribution diskette to the floppy diskette which contains your every day working programs. If you do not have a disk which contains programs you use often, it is recommended that you prepare a work disk by copying the contents of the distribution diskette to a new blank diskette. Remember! You must format new disks before you can copy data to them. See you DOS manual if you do not know how to format a new disk. BE CAREFUL, THE FORMAT COMMAND IS THE MOST DANGEROUS COMMAND IN DOS. If you have a hard disk, copy the program to the hard disk subdirectory which contains your executable programs. If you do not use subdirectories, simply copy the contents of the diskette to your hard disk using the COPY command. If you have trouble reading the screen ZCALC is written to take advantage of the attributes of a color monitor. All screen output is in color. Some monochrome monitors are more successful than others at displaying color screens. Some are so good, you will have no problem at all. Others are so bad that your screen may appear partially or completely blank. ZCALC attempts to determine if your machine has a color monitor. If ZCALC can determine that your machine does not have a color monitor, it will convert all screen output to black and white. ZCALC consumer installment loan calculator page 4 Unfortunately, the only information available to a program running on an IBM compatible PC is whether the machine contains a color video adapter card. Many machines, especially clones, which are designed to run graphics programs on monochrome screens, tell the program they contain a color card. This does not mean however that the machine has a color monitor. These machine may cause problems. If your machine has the color video adapter and a monochrome monitor, you may force the program to convert all output to black and white by starting the program with this command line: ZCALC B<RETURN> The B on the command line tells the program it is using a (B)lack and white monitor and that regardless of what the hardware says, it should send only black and white video signals to the monitor.\ The auto install menu creates a batch file to supply this B parameter for you automatically. If you are curious about batch files, see your DOS manual and use the menu to do the installation for you. Then take a look at the file ZCALC.BAT and notice that the program file has been renamed to ZCALCM.EXE. How to start the program After the program has been installed, it is started by typing its name, ZCALC dollowed by the return key. ZCALC consumer installment loan calculator page 5 Screens ZCALC has only one screen. Only one is needed. When ZCALC is loaded, you will see this screen: - Texas Installment Loan Calculator - Amount advanced Official fees financed Previous balance Origin fee (adds to APR) Rate, (APR) Credit life premium Date of note A/H premium Date of first payment Total amount financed Number of payments Total finance charge Payments per year Total of payments Balloon payment at Payment amount Amount of balloon pmt Odd days to first pmt You will enter all data on this screen. If you are "just playing around", you will get all the answers you need from this screen. When you find a combination that works for your customer, you will ask ZCALC to print you a report. The report is quite extensive and will give you all the information you need about the loan calculations. Menus ZCALC will occasionally ask for additional information such as what type credit life insurance, if any, you want to place on the loan. These selections will be made from menus that will appear at the bottom of the screen. When a menu pops up, it will temporarily obscure the data that was previously on the screen. Do not worry, it is not lost. When your menu selection has been made, the screen will be restored to the same condition as before the menu appeared. ZCALC consumer installment loan calculator page 6 The menus will "pop up" like this: - Texas Installment Loan Calculator - Amount advanced 1,000.00 Official fees financed 12.00 Previous balance 1,000.00 Origin fee (adds to APR) 10.00 Rate, (APR) 12.00 Credit life premium Date of note 01/01/88 A/H premium Date of first payment 01/01/88 Total amount financed Number of payments 36 Total finance charge Payments per year 12 Total of payments Balloon payment at Select CL Payment amount 1 Decreasing single Amount of balloon pmt 2 Level single s to first pmt 3 Joint decreasing 4 Joint level 5 None In the above example, all the data has been entered up to the point that the program needs to know what type of credit life insurance is to be computed for the loan. The menu "pops up" at the bottom of the page and asks the operator to select a credit life option. Using menus When you are presented a menu, the first thing you will notice is that one of the menu options is highlighted, printed in reverse colors. This is the default option. The default option is the option the program will use if the operator does not make a selection. There are two ways to choose an option from a menu. The first is to press the numeric key on the keyboard corresponding to the number to the left of the option, followed by pressing the return or enter key. You may use either the typewriter numeric keys at the top of the keyboard or the ten key numeric keypad (If your keyboard has one). NOTE however these are the number keys. They are NOT the function keys labeled F1, F2, etc. The other method is to use the up arrow or the down arrow cursor keys on your keyboard to select the desired option and then press return to execute it. Try this out by pressing up arrow or down arrow and you will quickly see how it works. ZCALC consumer installment loan calculator page 7 Remember, you must also press the enter (return) key. Instantly, when the return key is pressed, the screen will be restored to its condition before the menu appeared and the program will continue, or quit, if the quit option was chosen. In some cases, two menus will appear in succession. For example, the very next need after selecting the credit life option is to select the accident and health insurance option. Entering loan data on the screen The data input screen is like a blank form. You can enter data and if you don't like it, or if you make a mistake, you can go back and correct it. Use the cursor control keys to move around the screen and make corrections. Note however that you can only correct the data you enter, you cannot make changes to the calculated fields on the screen. In summary, you can change anything you enter before you select the type of credit life insurance. After that, everything else is calculated and you cannot change it. If you do not like the results produced by your selections, select the option to "Calculate an other" loan. You will be presented the same information you entered previously and allowed to change any or all items. Amount advanced This is the amount of the new credit advanced. The amount that will actually be advanced to the customer. In the case of a renewal or refinance, this amount may be zero. Enter dollars and cents. DO NOT ENTER COMMAS. Previous balance This is the total amount of all balances renewed or refinanced. If more than one loan is being rewritten, the net pay off balances of all these loans must be computed and totaled, their total is entered here. If this is a new loan, the previous balance will be zero. Enter dollars and cents. Do not enter commas. Note Either the amount advanced or the previous balance may be zero. They may not BOTH be zero. Attempting to use zero for both amounts will produce unpredictable results. Rate, (APR) ZCALC consumer installment loan calculator page 8 This is quoted rate, simple interest. Zcalc does not work with work "ADD ON" rates. Enter the rate however you like. You may enter twelve and one half percent as 12.5 or as .125. Zcalc will understand what you are thinking and will adjust the rate accordingly. In other words, if you enter a number greater than 1.00 for the rate, ZCALC will divide it by 100 before using it. Unfortunately, this means you cannot use a rate of 100% or greater. Special state rates: The state of Texas allows a special small loan rate called a split rate. It is called the eight- eighteen rate due to the way it is computed. Eighteen dollars per one hundred dollars financed up to $970.00 and eight dollars per one hundred dollars financed in excess of $970.00 but not exceeding $8500. To access this rate structure, enter 818 for the interest rate (no decimal). Entering dates Zcalc presents you with a blank template to fill in for the dates. It looks like this: [ / / ] Dates are entered month/day/year, like this: [mm/dd/yy] You must enter all six figures. If the month or,the day is the sixth, you must enter 06, not just 6. This is inconvenient but necessary for the validation routines. Each date entry is validated before you can leave the date field. If the date entered is not a valid date, the computer will beep and refuse to continue on to the next field. When this happens, use the backspace or left or right arrow keys to move to the invalid part of the date and change it, or reenter the entire date if you like. Date of note This is the date of the note, Zcalc assumes the funds are disbursed on this date. Interest will be charged beginning on this date. Odd days interest calculations will use this date. ZCALC consumer installment loan calculator page 9 Date of first payment This is the date on which the first monthly payment will come due. All subsequent payments will be due on the same day of each succeeding month. This date is also used in the odd days interest calculations. This date can be any time after the date of the note. Zcalc does not judge your lending policies. The date of the first payment can be one day or one hundred days after the date of the note. Zcalc doesn't care. Your insurance company however will care. If the first payment is more than 45 to 60 days after the date of the note, your credit life and A&H insurance will most likely not completely cover any claims. Official fees Enter any official fees charged here. UCC filing fees, automobile title registration fees, etc. This field is for fees that the lender actually paid, in cash, for the borrower. These fees are added to the amount financed and are not included in the finance charge when computing the APR for the disclosure statement. Other fees This fee is added to the finance charge when computing the APR to disclose. This is the place to put an origination fee or points. The calculations collect this fee over the life of the loan. It is NOT added to the amount financed. If you attempt to use a business calculator to check the payment computed by Zcalc, you will have to allow for this fee. Credit life premium and A/H premium These insurance premiums are calculated according to built in formulas for each state or insurance company. You cannot change them. If they are not correct for your state or your insurance carrier, contact Bottom Line Software. Custom versions are available. ZCALC consumer installment loan calculator page 10 Total amount financed Total finance charge Total of payments Payment amount Odd days to first payment These items are calculated and displayed. You may not enter any of them. Note that the payment amount is calculated so that the payment amount multiplied by the number of payments is exactly equal to the total of payments. There will never be a final payment of an odd amount. Nor will there be rounding differences. Every dollar amount is adjusted to real world exact cents. The necessary odd fraction is then transferred to the calculated Annual Percentage Rate, the APR to be disclosed. Days to first payment The number of days to the date of the first payment is calculated and displayed for your information. It is not displayed on the screen but is printed on the printed report. Make it a habit to check it. You will catch errors in date entries by doing so. For example, if you enter the same date twice, the days to first payment will be 0 when you were expecting it to be 30 or 31. Odd days interest Interest is computed for odd days in accordance with the requirements of Reg Z. Reg Z specifies that odd days interest be calculated as a partial period rather than a certain number of days. If the date of the note is 02-01-88 and the first payment is due 03-10-88, the odd days interest is calculated as the fraction of a month from 02-01-88 to 02-10-88. The regulation states it is the fractional period from the date of the note until the date one month before the first payment. In this example there are 9 odd days from 02-01-88 to 02-10-88. The odd days interest is calculated as follows: odd_days_interest = rate X principal / 12 X fractional_period the fractional_period is the odd days divided by the nominal number of days in a period. For monthly payments this is defined as 30. Thus: Fractional_period = 9 / 30 = 0.3000 ZCALC consumer installment loan calculator page 11 If the principal is 1000.00 and the rate is 10%, it figures out like this: odd_days_interest = .10 X 1000 / 12 * .3000 = 2.50 Using a strict 365/365 calculation, this would be: .10 X 1000 X 9 / 365 = 2.47 In this case Reg Z gives a little more, in other cases, it will give a little less. Selecting menu options When you are presented with a menu at the bottom center of the screen, you select the desired option by using the up and down arrow keys to move the option pointer to the desired option and then pressing the return key. Alternatively, you may select a menu option by pressing the number key corresponding to the option number to the left of the menu item. These are NUMBER keys, NOT function keys. To select option 3, press the "3" key on the typewriter or on the numeric keypad and then the <return> key. On most computers, the selected option will appear in reverse video. On some systems however the reverse video does not appear. Zcalc printed report Upon request, Zcalc will print a printed report giving all the details about the loan you have calculated. It allows you to add up to four lines of comments concerning the loan. These comments are typed on the screen and may be "amended" if necessary on the screen before printing the report. ZCALC consumer installment loan calculator page 12 The Zcalc report looks like this: Name of YourNationalState Bank here ------------------------------------------------------- Amount advanced.................: Previous Balance................: Official fees...................: Origination fee (adds to APR)...: Credit life premium.............: A&H premium.....................: Total amount financed...........: Total finance charge............: Total of payments...............: Number of regular payments......: Amount of regular payment.......: Amount of final payment.........: Quoted rate ....................: Actual rate (APR)...............: Date of note....................: Date of first payment...........: Date of last payment...........: Days to first payment...........: Days to last payment............: Fractional period, per RegZ.....: Odd days interest charged.......: Payments per year...............: Balloon at payment number.......: Balloon principal payment.......: Balloon interest payment........: Balloon total payment...........: Balloon CL prem level part......: Balloon CL prem decreasing part.: Comments: This is comment line one. This is comment line two. This is comment line three. This is comment line four. vers 1.0x - Texas Beta test version ZCALC consumer installment loan calculator page 13 How to read the report Some items on this report are self explanatory, others are not. This is what they are and how they are used by the program. Amount advanced This is the amount advanced. The number here will be the amount you entered as the amount advanced on the data entry screen. Previous Balance This is the amount of any renewed balance or balances from prior loans being renewed or rewritten. This is the amount you entered on the data entry screen. Official fees This is the amount of fees you entered on the data entry screen. Origination fee (adds to APR) This is the amount of origination fee you entered on the data entry screen. Credit life premium This is the credit life premium computed for the note. This premium amount takes into account the state rates, the type of coverage, the amount of coverage and the term of the note. See also the items for Balloon credit life premium on the level part of the balloon note and the balloon credit life premium on the decreasing part of the balloon note. A&H premium This is the Accident and Health (disability) insurance premium computed for the note. This premium amount takes into account the state rates, the type of coverage, the amount of coverage and the term of the note. Accident and health insurance is not always available on balloon notes. Total amount financed This is the total of all items which are considered part of ZCALC consumer installment loan calculator page 14 the principal of the loan. It includes the amount advanced, prior balances, credit insurance premiums, official fees, etc. Total finance charge This is the total interest charge for the entire life of the loan. It does include the origination fee if one is charged. It does not allow for late charges or interest on late payments. It assumes all payments are made on time. Total of payments This is the total of all the payments required to repay the loan. If there is a balloon payment, it is included. If there is no balloon payment, this is simply the payment amount times the number of payments. Number of regular payments This is the number of payments in the repayment schedule. It is the number entered on the data entry screen as the number of payments. Amount of regular payment This is the amount of the normal monthly payment. If there is a balloon payment, the balloon payment will be for a greater amount. The amount of the regular payment is the amount of payment necessary to repay the loan in the number of monthly payments given as the number of regular payments. Amount of final payment This is the same as the amount of regular payment. It is not the same as the Balloon payment. This payment amount anticipates the need in some cases for the final payment to be for the amount remaining unpaid. This amount may be a few cents to a few dollars different from the regular payment. This version of Zcalc does not use this payment amount. It deliberately adjusts the payment amounts so that there are no rounding errors and so that the final payment will be exactly the same as the regular payment. Quoted rate The quoted rate is the nominal rate of interest. It is the beginning rate, the rate from which we will make our adjustments. The quoted rate does not include the effects of rounding calculations, nor does it include the origination fee. If an origination fee is charged, it is added to the amount financed and will increase the true yield, the disclosed APR. ZCALC consumer installment loan calculator page 15 Actual rate (APR) The actual rate is the true yield. This is the actual rate earned by the lender after accounting for rounding off of payment amounts, credit insurance premiums, official fees, and any other fees. If an origination fee is charged, it is included in this rate as part of the interest earnings. The calculations accrue the origination fee over the life of the loan. The lender may wish to take the origination fee into income immediately, and may do so without distorting the regulation Z compliance of the program. Regulation Z requires a disclosure to the consumer of the rate the borrower is actually paying. From the point of view of the borrower, it makes absolutely no difference when the lender considers part of a payment to be income, or indeed how much the lender applies to income or principal. The only thing the borrower cares about is how many payments, how much time, and what payment amount. Date of note The date entered on the data entry screen as the date of the note. This is the date of the note, Zcalc assumes the funds are disbursed on this date. Interest will be charged beginning on this date. Odd days interest calculations will use this date. Date of first payment This is the date on which the first monthly payment will come due. All subsequent payments will be due on the same day of each succeeding month. This date is also used in the odd days interest calculations. This date can be any time after the date of the note. Zcalc does not judge your lending policies. The date of the first payment can be one day or one hundred days after the date of the note. Zcalc doesn't care. Your insurance company however will care. If the first payment is more than 45 to 60 days after the date of the note, your credit life and A&H insurance will most likely not completely cover any claims. ZCALC consumer installment loan calculator page 16 Date of last payment This is the maturity date. the final payment is due on this date. If there is a balloon payment, it is due on this date. Otherwise the final regular payment is due. Days to first payment The number of calendar days from the date of the note to the date the first payment is due. This date is used in computing the number of odd days if there are any. Days to last payment This is the number of days from the date of the note to the maturity date. This number is used in calculating the balloon payment. Some computer systems also request this number as a double check on lending policy compliance and data entry accuracy. Fractional period, per RegZ This is the time period for which odd days interest is charged. This is not a number of days. If the normal payment period is one month, reg Z assumes every month is 30 days. If the number of odd days is 18, the fractional period is then 18/30 or 0.30000 periods. Odd days interest charged Using the 18 odd days in the example above, the odd days interest would be calculated as 0.3000 times the interest due for the first period. This does not reduce the interest due during the first period. It is in addition to the interest due during the first period. Payments per year How many regularly scheduled payments will be made in one calendar year. The current version of Zcalc only handles monthly payments so this number is preset at 12. Balloon at payment number This is the same number that was entered by the operator on the data entry screen as the payment at which the loan balloons. ZCALC consumer installment loan calculator page 17 The loan is due in 23 payments computed on a 60 month amortization and one final payment for all interest and principal remaining unpaid. The balloon payment is due the month after the 23rd payment, the 24th month. The balloon payment is payment number 24. Disregard odd days when answering this question. Balloon principal payment Each payment consists of an interest component and a principal component. As the payment schedule progresses, the interest component becomes smaller and the principal component becomes larger. At the balloon payment date however, the principal component takes a big jump because the principal for all those remaining months suddenly becomes due today. This number is reported for information only. It is not needed in processing the loan. Balloon interest payment Each payment consists of an interest component and a principal component. As the payment schedule progresses, the interest component becomes smaller and the principal component becomes larger. At the balloon payment date however, the principal component takes a big jump because the principal for all those remaining months suddenly becomes due today. The interest component however remains just slightly smaller than for the previous payment. This number is reported for information only. It is not needed in processing the loan. Balloon total payment The total balloon payment due. Simply the balloon interest component plus the balloon principal component. Balloon CL prem level part Balloon CL prem decreasing part When computing credit life insurance for a balloon loan, there are actually two different payment streams that must be protected. The first is the stream of regular monthly payments. This is protected by a decreasing term policy for the decreasing amount of the loan. The balloon part of the loan however does not decrease. It stays the same right up to the maturity date. This part of the ZCALC consumer installment loan calculator page 18 loan is covered by a level term policy for the amount and term indicated by the note. Comments: Your comments. You may type anything you like in these spaces. They are strictly for the convenience of the operator. Type the Borrowers name, account number, closing instructions, funding instructions, etc. vers 1.0x - Texas Beta test version Vers 1.xx indicates the version number. The xx will be a number. The state name following the version number indicates the state for which insurance rates have been installed. Following the state, there may be another message such as "Demo version", "Beta test version", etc. If no such message appears, it is a normal production version. If this message does appear, heed it! it means something about this program is not normal. ZCALC consumer installment loan calculator page 19