Enter DISC from the Financial Menu to calculate a variety of investment variables for your clients, including the future worth of investments, and investment needed to achieve a specified yield later.
You may view a short explanation of the function by entering HELP. The screen defines the four major components calculated by the program, in this way:
· Future Value - returns the total value of deposits after depositing a given dollar amount at a set rate, and compounded over a set period.
· Future Value (Annuity) - returns tht total value of deposits after depositing a given dollar amount at specific intervals, and at a set rate, over a set period.
· Present Value - the current value of a single income payment due in the future. For example, if you were to receive a savings bond for $1000 that was paying to 10% and matures in 12 months, the present value of the bond is $905.21. This represents the current value of the bond minus the compounded interest.
· Present Value (Annuity) - is the current value of an income stream due in the future. For example, If you hold a land contract or a private mortgage paying $100 per month with a 10% yield (interest rate) and 12 month loan life, the present value is $11,374.50. (The future value in 12 months will be $12,565.56).
· Sinking Fund - To attain a specific dollar amount of savings over a set time period, how much should you deposit every compounding period.
· Installment Value - the periodic payment required to completely amortize a loan.
Whether you are calculating a future value, a present value, sinking fund or an installment value, the prompts and data entry are exactly the same.
More:
A Closer Look: Future Value of an Annuity
A Closer Look: Present Value of an Annuity
A Closer Look: Installment Value