Table of Contents

      Introduction
      Loan Amortization and Audit
          Features and Benefits
      Investments
          Present Value/Future Value
              Features and Benefits
          Return on Investment (ROI)
              Features and Benefits

Introduction

Loan Amortization and Audit

Loan Amortization and Audit - Features and Benefits

Feature	Benefit
Variable Interest Index	By separating the variable index table from the loan you can use the table in multiple loans. This is much more efficient than having each loan having it’s own index information included with the loan. FinAlyst ships with over 40 interest rate indexes including the major indexes used to calculate variable commercial and mortgage loans. Additional indexes can be defined by the user.
APR/IRR	FinAlyst calculates the government mandated Annual Percentage Rate (APR) value along with the Internal Rate of Return (IRR). These amounts include the non-amortizing amounts (e.g. points, miscellaneous charges, guarantee fees, etc. ) that are endemic to the loan but not a part of any repayment amount.
Extra Payments	FinAlyst can record and audit the accuracy of extra payments. This allows the complete auditing of the loan from a historical point of view. No separate amortization is required after these special payments to characterize the interest and principal breakdowns.
Skipped Payments	FinAlyst will properly account for skipped payments. Many financial institutions are allowing borrowers to skip payments during slow times of the year without penalties other than the normal interest.
Interest Rate Variations	FinAlyst will allow any loan to track a variable rate. This can be defined either by an interest rate index or the dates and rates can be manually inserted in the individual loan.
Balloon Notes	Balloon notes are typically truncated amortizations. FinAlyst will certainly accommodate this type of balloon note. However a more interesting balloon is where the loan is to balloon to a specific amount on a specific date. FinAlyst is one of the very few products that calculate this scenario. This feature is required to do lease analysis where you are ballooning to a specific (estimated) residual value for the property.
Multiple Advances	FinAlyst will handle the case of multiple advances. This is specifically important in auditing Lines of Credit or Sweep Accounts. Interest rate changes can be interspersed with advances and repayments in any order.
Mortgages	FinAlyst will handle almost any mortgage scenario. Reverse mortgages, Adjustable Rate Mortgages (ARMs), Negative Amortization Mortgages, Canadian Mortgages are a few of the many mortgages that FinAlyst will accommodate. For ARMs, FinAlyst will automatically adjust to the defined index and properly adjust to the interest rate caps defined in the loan documents.
Reporting	Loans can be reported individually or in groups. For accountants loans can be combined and future principal and interest amounts can be calculated for 5 year projections as required in financial disclosures.

Investments

Investments - Present Value/Future Value

Investments - Present Value/Future Value - Features and Benefits

Feature	Benefit
Cash Flows by Date	FinAlyst allows you to use a wizard to enter large volumes of identical cash flows with periodic dates. This saves you time when the flows and dates are uniform. However, you can also model unusual flows by entering the dates and amounts individually to describe unusual investment scenarios.
Variable Interest Rates	Most financial time value of money products assume a constant interest rate for PV/FV analysis. FinAlyst will let you enter any interest rate table you want and calculate the resulting values based on the variable rate structure.
Schedule Date	For calculating a present value, you can enter any “Schedule Date” to force the calculation to present a value as of that date. This allows you to have any date for calculating the present value of a series of flows, not just a date one period before the first flow. The first period can be a long or short period.
Value vs Time Graph	By graphing all values of the cash flows, you can see the value of the series of flows on any given date, including dates within the flows. This graph can be used to analyze the flow scenario more completely than a table of values.
Value vs % Graph	By graphing all values with the percentages (fixed only) then you can determine the value on any date as a function of the rates. This can be used to analyze how the rate effects the present value or future value better than a table of values.
Effective and Nominal interest	By allowing both nominal and effective interest you can model various scenarios where the interest is given either as an annual “effective” rate or a nominal rate with various compounding frequencies.

Investments - Return on Investment (ROI)

Investments - Return on Investment (ROI) - Features and Benefits

Feature	Benefit
Uncertain Parameter Analysis	In many ROI models there is always a parameter to the model that is somewhat uncertain. For example if you own real estate and are about to sell the property, you know exactly the purchase price the periodic net incomes, but you do not know the actual selling price. FinAlyst allows you to estimate the “uncertain parameters” and graph these parameters against the ROI. This allows you to analyze what your return (ROI) will be at various values of the uncertain parameter better than using a tabular approach to do your investigation. FinAlyst also allows you to dynamically change the uncertain parameter or the ROI and watch as the graph changes instantaneously to reflect your changes.
Inflow/Outflow tables	It is easy to model an ROI problem with FinAlyst because you simply put in the dates and amounts of your inflows of cash and outflows of cash. Wizards assist for uniform flows, but you can also have very non-regular flows by inserting the dates and amounts manually.
Tax Rate Analysis	ROI is so dependent on the tax rate for the individual or corporation. FinAlyst has the capability to look at ROI before and after tax considerations.
Inflation Rate Analysis	Inflation is also a factor in investment decisions based on the ROI model. FinAlyst has inflation indexes to assist your analysis before and after inflation. This analysis can be actual for historical inflation or projective for future inflation.
Cash Flow Irregularities	Unsophisticated programs require cash flows to be very regular and discount rates to be uniform. FinAlyst can handle any types of flows, positive and negative (e.g. profit and loss from an investment) to analyze the ROI.
Period and Cumulative ROI calculations	FinAlyst can calculate historical or projective ROI for both a defined period (e.g. return for a specific fiscal year) or cumulative (e.g. from the inception of the investment through the specified date).
Consolidated Reporting of Investments	Reports in FinAlyst can be run to show the ROI for any set of investments in the FinAlyst database. These investments do not have to be of like character (e.g. stock, real estate, collectables) and the valuations can be actual or estimates. Not all valuations must be on the same date as FinAlyst will calculate (using interpolated values) an estimate of the value as of the requested reporting dates.