|Introduction: The Constant Rate family is about applying a constant rate of payment to a timeperiod, ie working out how much is paid in that timeperiod.|
The basic constant rate function is Con, which simply applies a single annual rate of payment between Start and Finish dates. The other functions are variations on this:
- ConGrow (using the ...Grow... feature) projects a constantly growing annual rate. The rate is allowed to evolve according to one or more percentage growth rates specified in GrowthRates. A variable called RevMonthsOpt determines how often the actual rate changes with respect to the forecast GrowthRates - it can either change continuously (RevMonthsOpt=0), or every few months (eg . RevMonthsOpt=12 or omitted, annually).
- A very widely used and simplified version of ConGrow is AnnGrow, which projects an annually growing rate.
- LinGrow is a bit of a departure, essentially being a ConGrow but instead of growing in a compound, exponential way, it grows in a linear, straight line way.
- Finally úAnnualRateú is for determining an AnnualRate given AmountDisbursed, Start and Finish Dates. It is effectively the inverse of Con.
- The Multi... feature is applied to the basic Con function to give MultiCon. These functions simply to a "Con" several times according to a range of AnnualRates, Starts and Finishes.
- ConIdx is a bit different from others, perhaps its closest relative is úConFcstú. ConIdx is where the annual rate is linked to (but not equal to) the value of an index, and the annual rate needs to keep in line with that index.
All the functions in the Constant Rate family have clearly defined rates, even if these rates are sometimes determined from a growth schedule, eg ConGrow. For functions that have the facility to look up a rate off a forecast, see the Constant Rate Market family.