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SAFE TOOLBOXES® automates the creation of balance sheets for several schemes to amortize debts or to build up savings. The list of amortization and accumulation schemes available in the Financial Toolbox is presented below:

Amortization schemes: Accumulation schemes:

Constant amortization

Constant accumulation

French (equal payments)

French (equal payments)

Growing payments

Growing payments

Mixed french-constant

Mixed french-constant

Bullet (end payment)

Single payment

German

 

Coupon bond     

 

Building a financial schedule is very easy. Clicking on the button “Amortization or Accumulation” in the Financial Toolboxes the following form will appear:

At the top of the form select the type of schedule that you want: amortization or accumulation. To illustrate the power and the flexibility of this tool, let’s suppose that we are interested in the amortization of debt with an effective interest rate of 2% per year paying ten cash flows that grow at a fixed rate of 5% per period. The first payment will occur after 3 months and the others every 2 months. The parameterization of this complex amortization schedule is made as follows:

By confirming the selection, a new Excel tab will appear with a detailed report of the financial schedule. The first part of the report shows a chart with the predicted cash flows and the remaining debt. The bottom of the report also displays the same information as a table. As functions do all the calculation, any update to the parameters will also reflect in chart and table values.

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