When you select the Configuration tab, TValue displays a ribbon with parameters that affect how TValue computes interest and displays amounts. Use this ribbon to specify the method used to compute interest, the number of days in a year, Date Counting, options for Canadian mortgages, and Amounts format.
The settings that appear on the Configuration ribbon are the current default settings. You can change these settings and save them as the new defaults by using the Defaults menu button and then choosing Save.
To change the Configuration ribbon's settings
- Select the Configuration tab.
The Configuration ribbon shows the settings that are currently in effect.
- Change settings by clicking in a field and choosing a selection from the drop-down list that appears or by checking/unchecking a checkbox.
Note: If you want to save the changes as the default for new schedules, select the Defaults menu button and then choose Save.
The Reset option from the Defaults menu button can be used to reset all the settings on the Configuration ribbon to the factory defaults.
The settings on the Configuration ribbon:
Calculations group
Compute Method
The Compute Method is the method TValue uses to compute interest. You can choose Normal (compound interest), U.S. Rule (simple interest - no compounding), Canadian, or Rule of 78.
To change the Compute Method, choose an option from the drop-down list. The method that is highlighted is active.
Normal (compound interest) This is ordinary compound interest. This method is also known as the actuarial method. At the end of each compound period, the unpaid interest for the period is added to principal and becomes subject to interest in the following compound period. Normal payments are applied first to interest and then to principal. Learn more about Normal.
U.S. Rule (simple interest - no compounding) Similar to Normal, except that any unpaid interest is held as a separate non-interest bearing balance. Later payments are applied first to the unpaid interest. Interest is never charged on interest. When U.S. Rule is in effect, you have the option to allocate payments to principal first even when there is unpaid accrued interest. Learn more about U.S. Rule.
Canadian Payments are generally made monthly, but interest is compounded semiannually or annually. When producing an amortization schedule, an equivalent monthly rate of somewhat less than 1/6 the semiannual rate is used to apportion interest. Learn more about Canadian.
Rule of 78 A method of allocating interest over time. The total amount of interest on a loan is pre-computed. This interest total is then considered earned in proportion to the periodic time balances. Learn more about Rule of 78.
Note - Restrictions on use of Rule of 78: Cannot be used with Special Series, such as Fixed Principal Plus Interest and Percent Step series. Interest rate changes, multiple loans, open balances, or deposits/withdrawals are not allowed.
Year Length
The Year Length affects how TValue computes interest for odd periods. To change the Year Length, click the Year Length field and choose an option from the drop-down list. The Year Length that is highlighted is active.
365 Choose 365 to compute daily interest for odd periods using 1/365 of the Nominal Annual Rate.
364 Choose 364 to compute daily interest for odd periods using 1/364 of the Nominal Annual Rate. This method is useful when you are working with weekly payments and want your daily rate for stub periods to be exactly 1/7 of the weekly rate.
360 Choose 360 to compute daily interest for odd periods using 1/360 of the Nominal Annual Rate. This method is useful when you are working with monthly compounding and want to treat odd days as 1/30 of a month.
Date Counting
Normal
Canadian Calculations group
Note: You can only set the Canadian Calculations options when you choose Canadian as the Compute Method.
Basis This determines the compounding or calculation basis. The Canadian Basis is either Annual or Semiannual, with Annual used for nearly all cases except for mortgages.
Odd Days This controls the calculation of interest for odd days or stub periods. The Straight-line method computes interest for each day without compounding. The Compounded method compounds interest for each odd day. Learn more about Odd Days.
Amount Format group
Whole Amounts If selected, all entered amounts will be rounded and displayed to the nearest dollar amount. For example, if you enter 100 or 100.49, you get 100. In most cases you will not need to use the Whole Amounts mode. This mode is useful when amounts are over $100,000,000 and cents are just a distraction.
Compute group
Calculate computes your cash flow data