ANALOG COMPUTATION OF INSURANCE AND INVESTMENT QUANTITIES

• US 3,634,669 A
• Filed: 07/16/1969
• Issued: 01/11/1972
• Est. Priority Date: 07/16/1969
• Status: Expired due to Term

• Current Assignee: Beckman Industrial Corporation
• Original Assignee: Charles A. Soumas, David J. Spontak
• Inventors: Soumas, Charles A., Spontak, David J.
• Primary Examiner(s): Morrison, Malcolm A.
• Assistant Examiner(s): Smith, Jerry
• Application Number:
  US04/842,259
• Time in Patent Office: 909 Days
• Field of Search: 235/184-185,193-196,198
• US Class Current: 705/36.00R
• CPC Class Codes: G06G 7/52 for economic systems; for statistics G06G7/122, G06G7/19 take precedence
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A portable analog computer for determining insurance requirements, taking net worth into account, and for calculating investment returns on funds that are incremented periodically and earn compound interest at a prescribed rate. The computer includes assemblages that are oppositely energized from a common power supply and are connectable to a single indicating instrument. The latter is switchable to indicate direct computations and the difference between certain computations. Consequently, the computer can indicate the total funds required for specified family needs, the total net worth of the family and the difference between the two, which can be provided by insurance. Among the funds required for specified family needs are those used in making guaranteed monthly payments over a prescribed number of years and those used in meeting lump sum obligations. Each constituent of these funds is calculated using a potentiometer arrangement in which a constant voltage from the power supply is converted into an output current that is proportional to the amount in question. The output currents are variously combined and read by an ammeter indicating instrument. In the case of the monthly income fund, a resistive element is included between the source of constant voltage and the associated potentiometer arrangement in order to discount the indicated result in accordance with the interest rate paid on funds that are held to make monthly payments. Also included in the computer is a potentiometer arrangement for making the desired compound interest calculations, in which the amount being compounded is incremented periodically. This arrangement is loaded by a resistive network that is set in accordance with the particular interest rate.

Claims

1. An analog computer for evaluating insurance needs which comprises a first ladder network for producing a current indicative of the sum total of required funds, said first network having input and output terminals and a terminal connected to a common point;

a second ladder network for producing a current indicative of the sum total of available funds, said second network having input and output terminals and a terminal connected to said common point;

a voltage source having a terminal connected to said common point and two output terminals for providing substantially constant voltages of opposite polarity thereon, one of said outputs being connected to the input terminal of said first ladder network and the other of said outputs being connected to the input terminal of said second ladder network;

an indicating ammeter having two input terminals;

means for selectively connecting one input terminal of said ammeter to said common point and the other input terminal thereof to (1) the output terminal of said first ladder network, (2) the output terminal of said second ladder network, or (3) the output terminals of the first and second ladder networks jointly;

thereby to provide an indication by said ammeter of (1) the sum total of required funds when said first ladder network is connected to said ammeter, (2) the sum total of available funds when said second ladder network is connected to said ammeter, and (3) the insurance needs as the difference between total required funds and total available funds when said first and second ladder networks are jointly connected to said ammeter.

2. An insurance analog computer as defined in claim 1 wherein said first ladder network for determining the sum total of required funds includes Means for determining the total of funds needed over prescribed periods of time and means for determining the total of lump sum funds.

3. An insurance analog computer as defined in claim 2 wherein said first ladder network includes means for discounting the determination of the funds needed over prescribed periods of time according to the interest payable thereon.

4. An insurance analog computer as defined in claim 2 wherein said means for determining the total of funds needed over prescribed periods of time comprises a plurality of variable resistors, one for each different period of time and settable in accordance therewith, each interconnecting said common point with the input terminal of said first ladder network, a plurality of potentiometers, each directly in shunt with a different one of said variable resistors and having a tap point that is settable in accordance with an amount per unit of time, and a plurality of resistors, each interconnecting a tap point of one of said potentiometers with the output terminal of said first ladder network for converting the voltage at said tap point to a counterpart magnitude of current.

5. An insurance analog computer as defined in claim 4 wherein said first ladder network includes means for discounting the determination of the funds needed over prescribed periods of time according to the interest payable thereon, comprising a second plurality of variable resistors, each interconnecting one of the first mentioned variable resistors with the input terminal of said first ladder network and settable according to the interest payable.

6. A life insurance analog computer as defined in claim 1 wherein said first ladder network includes an income fund calculator unit and a security fund calculator unit;

said income fund calculator unit comprises (a) a plurality of pairs of series-connected variable resistors interconnecting the input of said first ladder network with said common point, one of said variable resistors in each pair being settable in accordance with the time period that income is to be provided and the other variable resistor being settable in accordance with the interest payable on said income fund, (b) a plurality of potentiometers, each being connected in shunt with a time period variable resistor and having a tap point that is settable in accordance with a periodic income amount, (c) a variable resistor for adjusting the deflection sensitivity of said indicating ammeter connected to the output terminal of said first ladder network, and (d) a plurality of resistors for converting voltage to current interconnecting the tap points of said potentiometers with said resistor for adjusting deflection sensitivity;

said security fund calculator unit comprises a second plurality of potentiometers interconnecting the input terminal of said first ladder network with said common point and each having a tap point that is settable in accordance with the value of a specified obligation, (b) a second variable resistor for adjusting the deflection sensitivity of said indicating ammeter connected to the output terminal of said ladder network and (c) a plurality of resistors for converting voltage to current interconnecting the tap points of the second mentioned potentiometers with said second resistor for adjusting deflection sensitivity;

said second ladder network comprises (a) a third plurality of potentiometers interconnecting the input terminal of said second ladder network with said common point and each having a tap point that is adjustable in accordance with the value of a specified asset, (b) a third variable resistor for adjusting the deflection sensitivity of said indicating ammeter connected to the output terminal of said ladder network, and (c) a plurality of resistors for converting voltage to current interconnecting the tap points of the third mentioned potentiometers with said third resistor for adjusting deflection sensitivity.

7. A life insurance analog computer as defineD in claim 6 wherein said voltage source comprises a first voltage regulator diode interconnecting the input terminal of said first ladder network with said common point, a second voltage regulator diode interconnecting the input terminal of said second ladder network with said common point, a full-wave rectifier having input terminals jointly connected to said common point and output terminals, a first protective resistor interconnecting one output terminal of said full-wave rectifier with said first voltage regulator diode, and a second protective resistor interconnecting the other output terminal of said full-wave rectifier with said second voltage diode.

8. An analog computer as defined in claim 1 further including an investment calculator unit energizable by said voltage source and connectable to said indicating ammeter by the connecting means comprising means for producing a voltage that is proportional to the product of a periodic investment by the time period of the investment and means for converting the produced voltage to a current indicative of the value of the investment at a prescribed rate of compound interest.

9. An analog computer as defined in claim 8 wherein the producing means comprises a first potentiometer interconnecting an output terminal of said voltage source with said common point and having a tap point that is adjustable to provide a voltage proportional to the magnitude of each periodic investment, a second potentiometer interconnecting said tap point with the output terminal of said voltage source and having a tap point that is adjustable according to the interval of the periodic investments;

and the converting means comprises a plural set of resistors, each set including a first resistor connected to the tap point of said first potentiometer, a second resistor connected to the output terminal of said voltage source, and a third resistor connected to said second resistor, and means controlled according to the prescribed rate of interest for connecting said first resistor to said second resistor and for applying the voltage developed by said second resistor to said indicating ammeter.

10. An analog computer as defined in claim 8 wherein the converting means comprises two potentiometers in series connected in shunt with the producing means, said potentiometers having tap points that are ganged together and settable according to a prescribed rate of compound interest, and means for applying the voltage developed at the tap point of one of said potentiometers to said indicating ammeter.