bwBASIC/BP100/COMPBAL.BAS

1 REM COMPBAL
5 CLEAR 1000
10 CLS
20 PRINT TAB(5); "LOAN RATE WITH COMPENSATING BALANCE":PRINT
30 PRINT"WHEN A BUSINESSMAN BORROWS MONEY FROM A BANK HE IS SOMETIMES
35 PRINT "REQUIRED TO KEEP A COMPENSATING BALANCE IN THE ACCOUNT.
40 PRINT"A COMPENSATING BALANCE IS AN AMOUNT THAT THE BUSINESSMAN
45 PRINT"PAYS INTEREST ON(AS HE HAS BORROWED IT) BUT WHICH HE 
50 PRINT"CANNOT WITHDRAW FROM HIS ACCOUNT. IF A 15% COMPENSATING 
55 PRINT"BALANCE IS REQUIRED,E.G. THIS MEANS THAT FOR EVERY $1,000
60 PRINT"BORROWED THE BUSINESSMAN CAN ONLY WRITE CHECKS FOR $850.
65 PRINT"THIS IS ONE METHOD A BANK USES TO RAISE THE EFFECTIVE INTEREST
70 PRINT"RATE ON A LOAN. THE NOMINAL RATE ,IN THIS CASE, IS LOWER
75 PRINT"THAN THE 'TRUE' EFFECTIVE RATE.
90 PRINT:INPUT"PRESS ENTER TO BEGIN";Z9$
100 CLS
110 INPUT"INPUT PROCEEDS OF LOAN IN $            ";AMOUNT
120 INPUT"INPUT COMPENSATING BALANCE %           ";CP:CP=CP/100
130 INPUT"NOMINAL INTEREST RATE ON LOAN(%)       ";NI:NI=NI/100
140 INPUT"NORMAL ACCOUNT BALANCE WITH NO LOAN   $";NA
150 PRINT
170 AF=AMOUNT*(1-CP)+NA:REM AVAILABLE FUNDS
180 TI=AMOUNT*NI:REM TOTAL INTEREST 
190 EF = TI/AF:REM EFFECTIVE INTEREST RATE.
260 F$(1)="%                                        %    $$######.##"
265 F$(2)="%                                        %         ###.## "
268 PRINT USING F$(1);"NOMINAL COMPENSATING BALANCE AMOUNT",AM*CP
269 PRINT USING F$(1);"TRUE COMPENSATING BALANCE AMOUNT",AM*CP-NA
270 PRINT USING F$(1);"AVAILABLE FUNDS FROM LOAN",AF
280 PRINT USING F$(2);"EFFECTIVE INTEREST RATE  ";100*EF;:PRINT "%"
290 PRINT:INPUT"PRESS ENTER FOR MORE COMPUTATION";Z9$
295 IF Z9$ = "-1" THEN END
300 GOTO 100