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Procedure documentationEditing the Similar Interest Amounts Group Box

 

In the Similar Interest Amounts group box on the Calculation tab page, you edit the fields for a condition that belong to amount category 120010 Similar Interest Amounts.

In this group box you define a fixed amount or interest rate that is determined based on calculation capital such as loan amounts not yet utilized (disbursement obligation), and its calculation.

This group box provides the same fields as for the definition of a nominal interest rate. Unlike the nominal interest rate, similar interest amounts cannot be capitalized or offset against the annuity repayment.

Procedure

You can make the following settings:

  1. In the Condition Form field, you can enter the use for the condition.

  2. Use the Rounding Category and Rounding Unit fields to control how the system rounds the resulting amounts for the similar amount.

    For more information, see Rounding Numerical Values.

  3. Specify a percentage, an interest rate, a formula, or an amount.

    • If you enter an reference interest rate, you can enter a markup or a markdown for the reference interest rate.

      Example Example

      The three-month EURIBOR is 4.733 % on 11/03/2008.

      • You want to define a markup of 2 % on the reference interest rate, so you enter 2.0. The system calculates the following interest rate: 4.733 + 2.0 = 6.733 %.

      • You want to define a markdown of 2 % on the reference interest rate, so you enter -2.0. The system calculates the following interest rate: 4.733 - 2.0 = 2.733 %.

      End of the example.

      You can enter a minimum and a maximum interest that the system uses if the reference interest rate is greater or lesser than the minimum or maximum interest rate.

      In the Maximum Increase and Maximum Decrease fields, you can enter the maximum interest increase or maximum interest decrease that can occur between two interest rate adjustments.

      For more information, see Interest Reference (CA-FIM-FMA).

      For more information, see Interest Rate Adjustment.

    • You can use a formula to calculate the percentage.

      For more information, see Formula Editor for Financial Mathematics.

    • If you enter an amount, enter a condition currency in the header data of the condition or a payment currency.

      For more information about the dependencies of currencies in conditions, see Currencies in Conditions.

  4. You can enter a fixed amount in the Basis Amount field, or you can enter a reference in the Basis Reference field. The system takes this entry into account during the calculation.

    Enter the following parameters for the calculation:

    • Enter an interest calculation method.

      When you have chosen the value actW / 252 in the Interest Calculation Method field, enter an interest calendar.

      For more information, see Interest Calculation Method.

    • If you select the Due-Date Related Calculation checkbox, the system includes flow records whose due dates are in the calculation period due to shortened or extended periods. If these due dates are not in the calculation period, the system ignores these.

  5. You can use the Pro Rata Calculation field to control how the start period and end period are to be included in the calculation for shortened or extended periods.

  6. You can enter a payment currency that differs from the condition currency.

    When you enter a payment currency, you can enter a fixed exchange rate that is used for the validity period of the condition.

  7. You can use the Calculation Basis Fixing field to control the time when the calculation capital is to be fixed.

  8. In the condition type Customizing of your application, in the Amount Category dialog structure, you can select the Amount-Based Reduction or the Percentage-Based Reduction checkboxes. This enables you to enter a reduction as an amount, percentage, or interest reference by which the system is to reduce the calculation basis of the interest calculation.

    If you use both methods of reduction, the system first uses the percentage-based reduction and then the amount-based reduction.

    If you enter an interest reference reduction, you can specify a minimum or maximum percentage rate for the reduction.

Result

You have defined a similar interest amount.

More Information

Amount Category 120010 Similar Interest Amounts

Editing the Calculation Tab Page