Event Names

TValue allows you to use predefined Event Names and groups or create your own. Event Groups combine complementary events together. For example, a Loan is complementary to a Payment. An Investment is complementary to a Return.

All events belong to an Event Group and are one of two basic group types: Loan/Payment or Deposit/Withdrawal. TValue ships with the below predefined groups.

The following basic Event types cannot be changed

Loan A Loan Event is typically the first Event in lending transactions, although it's possible to lead off with a Payment. A Loan is simply a cash flow that goes in the opposite direction of a Payment.

Loans are associated with Payments in the same way that Deposits are associated with Withdrawals. In most cases, you can use Loans and Payments or Deposits and Withdrawals to get the same results. The functional difference between a Loan and a Deposit is that you can enter finance charges (points, etc.) for a Loan, but you can't have special Series (Percent Step, etc.). With Deposits, you can have Special Series, but you can't have finance charges and Annual Percentage Rate calculations.

Payment A Payment is a cash flow in the opposite direction of a Loan. It is used in conjunction with the Loan Event. Payments occur individually or as part of a series (e.g., 36 monthly payments). Payments can have any of the Special Series, such as Fixed Principal Plus Interest and Percent Step.

Deposit A Deposit is a cash flow in the opposite direction of a Withdrawal. Deposits can be used with special event series except Interest Only and Fixed Principal Plus Interest. Deposits should not be used if you are entering finance charges or computing the Annual Percentage Rate.

Withdrawal A Withdrawal is a cash flow in the opposite direction of a Deposit. It is used on the same problems as the Deposit Event. Withdrawals support all Special Series.

Rate Change A Rate Change establishes a new interest rate effective on the date shown in the start Date field. The Rate Change Event triggers compounding unless you specify the compounding period to be None. The Amount, Number, Period, and End Date fields are skipped. You can set a new compounding period along with the new interest rate. This new compounding period must be compatible with subsequent payment periods. In other words, both must be either week-based or month-based. Daily, Exact Days, and Continuous compounding work with all payment periods.

See also

• Creating a new Group Name
• Creating a new Event Name
• Choosing an Event for a cash flow line