A programmable electronic calculator is provided having a manually operable annuity switch with begin- and end-position settings, enabling a user to specify the type of annuity calculation to be performed. When the switch is set to the begin position, the annuity calculation is performed with payments due at the beginning of each payment period; when the switch is set to the end position, the annuity calculation is performed with payments due at the end of each payment period. The annuity calculation is performed under control of a routine stored in a read-only-memory (ROM) of a data processing unit.
A calculator apparatus is provided for computing minimum principal amounts for deposit into demand (passbook) accounts and into term (certificate-of-deposit) accounts paying interest at differing rates. The computed minimum principal amounts not only satisfy the minimum deposit requirements of the term accounts but, when deposited, provide both maximum interest earnings and payments from principal, without interest penalty ordinarily associated with early withdrawals. The apparatus comprises a keyboard, a read-write memory, a logic unit, a printer, and a display unit. The logic unit includes an arithmetic unit having a plurality of data storage registers and a read-only-memory with a stored program. The apparatus computes the minimum principal amounts in accordance with the stored program and in response to entered data.
A data processing apparatus having preprogrammed functions for calculating interest rate dependent variables employs an interest rate mode designation command to enable operation in a selected one of a set of interest rate modes. In the preferred embodiment actuation of an AEC key advances the interest rate mode in a circularly sequential manner among annual percentage rate (sometimes referred to an annual nominal interest rate), annual effective interest rate and annual continuous interest rate. In the preferred embodiment actuation of a key sequence including a compute key and the AEC key enables conversion of an interest rate specified in a first mode into an interest rate specified in the next sequential mode. The data processing apparatus includes a means for outputting an indication of the current interest rate mode.
Methods and apparatus for funding a future liability by means of an insurance investment program. The system estimates the expected cost of the liability when the liability is expected to occur and computes the present value of each unit of insurance needed to yield that expected cost at maturity. The system also aids the insurance fund manager in making decisions regarding investment of fund assets in order to meet present and future obligations of the fund.
Methods and apparatus for funding a future liability by means of an insurance investment program. The system estimates the expected cost of the liability when the liability is expected to occur and computes the present value of each unit of insurance needed to yield that expected cost at maturity. The system also aids the insurance fund manager in making decisions regarding investment of fund assets in order to meet present and future obligations of the fund.
A method and apparatus are provided to fund a certain future liability of uncertain value and thereby defease fully its future cost. The method is an insurance investment plan which can be implemented using a floating rate zero coupon note obligation the interest rate on which varies automatically with the rate of inflation or the cost of some specified service or commodity which gives rise to the future liability, and the interest payments on which are automatically reinvested. The system projects the expected future cost of the liability based on a projected escalation rate associated with a certain specified index and based also on when the liability is expected to come due. It then calculates the present value sale price on the floating rate zero coupon note by discounting the expected cost at maturity at a rate that represents the insurer's projected reinvestment yield net of an insurance risk premium.
