Contents of the FCALC.DOC file
Full Featured Financial Software
910 Loire Valley Drive
Marion, Ohio 43302-6754
(c) 1993, WrightWare, All Rights Reserved.
Calc is copyrighted software and as such is protected by the
laws of the United States. This version (5.0) is distributed
as shareware and you are encouraged to try Calc free of charge
for a thirty (30) day trial period. You are also encouraged to
distribute this program to others or to upload it to other
Bulletin Board Services provided that it is distributed
unaltered, with all original files intact and unmodified. In
the true spirit of user supported software, Calc does not
contain any annoying "beg for registration" messages and is not
crippled or disabled in any fashion. Registration is left to
the integrity of the user. If after thirty (30) days you
continue to use Calc you need to register your copy by sending
your check or money order for $25 to:
910 Loire Valley Drive
Marion, Ohio 43302-6754
Along with your registration please provide the following
1. Name 3. City 5. Zip Code
2. Address 4. State
It is important that registered users include the above
information so they can be contacted regarding notices
for future upgrades and other information.
Shareware distributors may charge up to $6 for disk duplication
services. This product may not be distributed along with any
other product that is being sold for profit without the
expressed, prior written permission of WrightWare.
SOFTWARE LICENSE AGREEMENT
Registered users of Calc are entitled to make archiveal copies
of this software for the sole purpose of protecting their
investment. This license allows you to use one copy of Calc
on one computer at one time. You may use your copy of Calc on
different computers provided that there is not a possibility of
Calc being used on two computers at the same time.
Do not confuse this copyright notice with the user supported
method of distribution. If you use this program beyond the 30
day trial period you are required to pay the licensing fee of
$25. Supporting the Shareware concept encourages software
authors to continue to produce products on a "try it, before
you buy it basis". If you paid a fee to anyone other than
WrightWare or an authorized retail distributor then you did not
pay for a license.
This product is distributed "AS IS" and the author specifically
disclaims all warranties, either expressed or implied,
including but not limited to, implied warranties of
merchantability and fitness for any particular purpose or use.
In no event shall WrightWare, or the author, David L. Wright be
held liable for any loss of profit or any other commercial
damage, including but not limited to, special, incidental,
consequential, or other damages.
Although we have endeavored to ensure the accuracy of the
results this program returns, it is feasible that it may
provide results which might be improperly interpreted by the
user, or in the worse case, programming errors. Hence, the user
is cautioned not to solely rely on this program when making
financial decisions. There is no substitute for your own sound
judgement, professional financial advisors, and a healthy dose
Calc version 5.0 is full featured financial software which
will provide solutions to many common financial questions. It
includes a wide range of financial functions: Present Value,
Future Value, Discounted Cash Flow Analysis, Future Value of an
Annuity, Present Value of an Annuity, Pay Off Amount for a
Loan, Amortization, and Loan Payment Calculations. It also
includes Comparative programs, where two situations are
presented side by side for ease of comparing the efficacy of
alternative investment or loan decisions. These comparative
programs include Future Value Comparison, Present Value
Comparison, Future Value of an Annuity Comparison, Present
Value of an Annuity Comparison, Loan Payment Comparison, and
Annuity Payment Comparison. It also includes programs which
will solve for unknown interest rates for a Lump Sum Deposit,
Future Value of an Annuity, Present Value of an Annuity,
Annuity Payment, and Loan/Lease payments. It also includes
programs to Convert Annual Percentage Rates to Effective Rates
and Effective Rates to Annual Percentage Rates. Calc also
includes a pop-up Calculator and Calendar.
Calc was designed for ease of use and contains an integrated
help facility, which will pop up context sensitive help at any
time, when the key is pressed. Highlighting a menu item
and then pressing provides an overview of the item.
Pressing while in an entry field, pops-up help specific to
the entry field. The help facility is quite extensive and
contains most of the information found in this documentation
file. It also contains an explanation of each routine and
examples aimed at providing the user with a conceptual
understanding of the routine. For this reason, discussion
pertaining to conceptual use of the program is intentionally
limited in this document.
Calc requires at least a CGA monitor and an IBM or compatible
computer with 256K of memory, preferably with a hard drive.
Calc can be installed on a floppy disk, but access time to
files will be slow. The disk must not be write protected as
Calc does periodic writes. The six (6) files you should have
received are: FCALC.EXE, FCALC.API, FCALC.SCR, FCALC.HLP,
FCALC.DAT, and the file you are currently viewing, FCALC.DOC.
Copy these six (6) files to the same directory, preferably on
your hard drive in a directory named FCALC. All six files must
be in the same directory and the program must be started from
this directory. At the prompt, merely type FCALC and then
press enter to run the program.
The Calc menu is a standard "pull-down" menuing system. To
activate the menu strike the Alt key and press the first letter
of the menu item you wish to select. Highlight the selection
of choice and press enter. As an alternative to highlighting
the desired selection, the "hot key" of the desired item may be
pressed. the "hot key" for any menu item is the key which is
highlighted in intense white.
The 25th line command bar displays the date and time as well as
available keys/commands. These keys vary with the user's
location within a program and therefore, it is important to
reference this command line to properly navigate the program.
If an error is made while making an entry in an Calc field it
may be corrected, one character at a time, by using the
The entire entry can be erased by striking the Key. Once
the user has hit the return key and exited the field, pressing
the Cursor Up key will return the user to the previous field to
make necessary corrections.
The Cursor Dn key enters the same number that was previously
entered in a field and advances the cursor to the next entry
field. This key is useful when the user wishes to change only
one or two variables in a program for comparison purposes. The
Cursor Dn key when in "Comparison" programs will enter the
variable from Case A into Case B, if Case B had no prior entry.
Decimal points are placed in variable fields by striking the
period key or the Del key when the NUM lock key is toggled on.
Appropriate dollar signs, commas, and percentage signs are
automatically inserted by the program.
Calc programs will accept a maximum number of 999,999,999.99
in many input fields. Output is limited to 9,999,999,999.99.
Input which results in output exceeding the maximum may be
preceded by "%" which indicates that there are leading digits
which have been truncated from the output. The user is
cautioned that Calc solutions preceded by % are inaccurate.
If values are entered into fields which are "out of range" a
dialog box will appear and explain the default error.
The maximum Compounding Periods Per Year are only limited as
explained in the paragraph above.
Ads are often seen which state "Compounding from day of deposit
to day of withdrawal". This type of statement implies daily
compounding, but how many days are there in a year? When
compounding periods are daily, two popular methods are used for
computing days in a year - the exact method and the ordinary
(Banker's Rule). The exact method assumes 365 days in a year
and the ordinary assumes twelve, 30 day months, or 360 days in
a year. To determine the convention used in any particular
investment, the user needs to check with the particular
investment institution. Calc programs utilize the exact
Compounding could occur every hour, minute, second, or for that
matter, every instant. Compounding every instant is the
concept of "Continuous (Instantaneous) Compounding". The
formula for Continuous compounding utilizes "e" the base of the
system of natural logarithms. This constant is approximately
Discounted Cash Flow utilizes the base of the natural log to
compute the Net Present Value. To simulate Continuous
Compounding in other programs, enter a large number, (such as
999,999) in the Compounding Periods Per Year.
In addition, Calc programs will accept any numerical input
for compounding periods, within the limits explained above;
however, compounding periods other than 1, 2, 3, 4, 6, 12, 24,
26, 52, 360, 364, 365, or 366 have little practical value,
because it would be unlikely to find investments with
compounding periods differing from these.
The Amortization program produces standard amortization
schedules. The schedules can either be displayed to the screen
or printed on the printer. Pressing while in the
Amortization program provides information on printing to the
screen or printer.
Calc allows up to ten (10) different interest rates over the
life of a loan. An * denotes the commencement of an interest
rate when the amortization schedule is printed or displayed to
Number of Years can be up to thirty (30). A loan for
fractional years (such as an 18 month loan) may be entered as
1.5 in the Number of Years field.
Payments Per Year (PPY) may be 1, 2, 3, 4, 6, 12, 24, 26, or
52. The following chart further explains PPY:
PPY Frequency Meaning # Pmts in Full Year
--- --------- ------- -------------------
1 Annual Once/year 1
2 Semi-Annual Every 6 months 2
3 Tri-Annual Every 4 months 3
4 Quarterly Every 3 months 4
6 Bi-Monthly Every other month 6
12 Monthly Each month 12
24 Semi-Monthly Twice each month 24
26 Bi-Weekly Every other week 26 or 27
52 Weekly Each week 52 or 53
As most individuals who are paid either Weekly or Bi-Weekly
are probably aware, there is one day of the week which will
occur 53 times in non leap years, and two days of the week
which will occur 53 times in leap years. Consider for a moment
that 52 X 7 = 364. There are 365 days in a year, 366 in a leap
year. Ergo, it is apparent that one day of the week (two in a
leap year) will occur 53 in a given year. Where applicable,
Calc recognizes this fact and therefore if Weekly or Bi-Weekly
is selected, certain years will contain either 53 or 27 PPY,
respectively. The date selected as the 1st Payment Date will
establish the Day of the Week for payment of a loan, and when
this day of the week occurs 53 times in a years, the number of
payments per year is adjusted accordingly.
Calc Amortization assumes that payments are made in arrears,
meaning that the borrowed funds were received in the previous
period. Another assumption is that compounding periods are the
same as the payment period. Calc uses the normal method of
amortization which means that the payment remains the same
thru the life of the loan (except final payment), unless the
The user is reminded that the final payment of an Amortized
Loan is often slightly higher or lower than the other payments.
The final (Last) payment is displayed by Calc Amortization.
An annuity is a series of equal payments or receipts for a
specified number of periods.
An Ordinary Annuity has payments at the END of each period of
An Annuity Due has payment at the BEGINNING of each period of
A Simple Annuity has payment dates which match the compounding
periods. All Calc annuity programs are Simple Annuities and
therefore, Calc annuity programs should not be used when
compounding does not coincide with periodic deposits.
In applicable Calc annuity programs the user will be prompted
by a dialog box and will need to indicate if the Annuity to be
calculated is Ordinary or an Annuity Due.
The Present Value Annuity Program does not present a prompt for
input as to an Ordinary or Annuity Due. This is because the
equation utilized by the program assumes an Ordinary Annuity.
The Discounted Cash Flow program is based on an Ordinary
Annuity equation and therefore, the Cash Flows alluded to in
the program are assumed to occur at the end of each period.
The Calc Pay Off program calculates the amount required to pay
off an amortized loan before the final payment. The equation
utilized is based on the Unpaid Balance Method. Consequently,
the Pay Off program will not solve for loans which are based on
the Rule of 78s or an alternative convention.
FUTURE VALUE (FV)
FV is the amount to which a deposit will grow by a given future
date when compounded by a given interest rate. This Calc
program will solve the question: if I deposit $x today at x%
interest what will be the value of the deposit at the end of x
PRESENT VALUE (PV)
PV is the current value of a future sum. This Calc program
will answer the question: How much do I need to deposit today
at x% interest to have $x at the end of x years?
FUTURE VALUE ANNUITY (FVA)
FVA is the amount to which a series of equal deposits will grow
by a given future date. This Calc program will answer the
question: If I deposit $500 at the end of each month, at 10%
interest, what will be the value of these deposits at the end
of 9 years. To determine the Fv of an Annuity with a starting
balance run Calc Future Value to compute the Fv of the
starting balance, then run Calc FV Annuity, and then add the
results of the two programs together. The Calculator is handy
in storing values between Calc programs.
Calc Annuity Payment answers the question, how much do I need
to deposit each period, for a certain number of years to
achieve a desired future sum. For instance, suppose that on
the day your child is born you decide to start saving for his
college education. You estimate that 18 years from now, a four
year college education will cost $100,000. You have an
investment which will pay 10% interest and your deposits will
be made at the beginning of each month. By entering these
variables into this Calc program, the user will find that the
required monthly payment to achieve this future sum is $165.12.
This Calc Program converts the Effective Interest Rate (Eff)
back to the Annual Percentage Rate (APR). As defined in all
Calc programs, the APR accounts for compounding only once per
annum, while Eff produces the Effective Interest Rate when
compounding periods are taken into account.
For instance, the interest on $1,000 at 12% APR for 10 years is
$2,105.00. The interest on $1,000 at 12% APR, with interest
compounded daily (365 days in year) is $2,319.46. In this
example the APR is 12% while the Eff rate is 12.75%.
This Calc program does the inverse calculation of EFF/APR.
DISCOUNTED CASH FLOW ANALYSIS (DCF)
Discounted Cash Flow Analysis combines two methods of ranking
investment decisions - the Internal Rate of Return (IRR)
Method and the Net Present Value (NPV) Method.
NPV is equal to the present value of future returns, discounted
at the marginal cost of capital, minus the present value of the
cost of the investment.
IRR is the rate of return on an asset investment, calculated
by finding the discount rate that equates the present value of
future cash flows to the cost of the investment.
This Calc program will answer the question: If I purchase an
apartment building for $50,000 and my required rate of return
is 12%, and the future cash flows over the next 5 years will be
$5,000 each year, and the resale value of the apartments after
5 years will be $75,000, and $10,000 depreciation is taken,
has my investment goal been met?
If the NPV equals 0, then the investment goal has been met and
the IRR is 12%. If the NPV is greater than 0, then the
investment goal has been exceeded, and the IRR is greater than
12%. If the NPV is less than 0, then the investment goal has
not been met and the IRR is less than 12%.
The number of Cash Flows in this Calc program is limited to
FIND LOAN PAYMENT
This Calc program determines the payment for a loan given the
variables of interest rate charged, duration, and number of
payments per year. If an amortization schedule is required,
the Calc companion program "Amortization Schedule" should be
PRESENT VALUE ANNUITY (PVA)
There are two ways to conceptualize the PVA. The first is that
a PVA is a lump sum that can be deposited today that will
amount to the same final total as would the periodic payments
of an annuity. The second is that a PVA is a lump sum that
could be deposited today so that equal periodic withdrawals
could be made.
As an example of the second way of looking at a PVA, $6532.89
must be deposited today at 10% interest compounded annually, to
provide withdrawals (or payments) of $1500 at the end of each
year for the next 6 years.
As an example of the first way of looking at a PVA, $6532.89
left in an account for 6 years at 10% interest, would produce
the same final total as deposits of $1500 at the end of each
year for six years.
The PVA program assumes an ordinary annuity. That is, payments
occur at the "END" of each period.
Calc Comparison Programs provide the user with a visual method
to evaluate the efficacy of alternative investment decisions or
loans. Entries are first made in the Case A column, then in
the Case B column. Comparison programs included are Future
Value, Present Value, Fv Annuity, Pv Annuity, Loan Payment, and
Calc interest programs find the interest rate when the
interest rate is unknown. Since a direct equation does not
exist, except for lump sums, to solve for an unknown interest
rate, Calc will make successive approximations at the interest
rate until it is found. The result will be an approximation.
To test its accuracy, plug the result into the appropriate
When initially popped-up the calendar displays the current
month calendar. A 25th line command bar displays information
necessary to change the calendar's date.
Pops up a four function calculator which is useful for doing
simple calculations on the fly and for storing numbers when
moving from one Calc program to another. A 25th line command
bar displays information relative to the calculator's
operation. The help facility also provides additional
Calc remains in memory but exits temporarily to the DOS
command prompt. You can then perform any service supported by
COMMAND such as Dir, Type, Sort, or executing another program
that memory constraints will allow. Calc when loaded,
occupies approximately 253K of memory.
If you change directories while shelled to DOS, be sure to
return to the Calc directory before returning to Calc.
Failure to do so will result in an error message stating that
required files cannot be found.
When shelled to DOS and you wish to return to Calc, type
"Exit" at the DOS prompt.
Loading Memory Resident Programs (TSRs) while shelled to DOS,
will produce erratic results when returning to Calc. If TSRs
are used they should be loaded prior to loading Calc.
This product was created in part with ProWindows (tm)
Professional Software Development System. For more
information about the ProWindows (tm) family of products,
DSE Software Publishing
Post Office Box 96
Willits, CA 95490-0093
IBM is a registered trademark of International Business
MS-DOS is a registered trademark of Microsoft Corporation.
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