Obligated investment system

• US 5,987,436 A
• Filed: 01/26/1999
• Issued: 11/16/1999
• Est. Priority Date: 01/26/1999
• Status: Expired due to Fees

• Current Assignee: Halbrook W. Bracey
• Original Assignee: Halbrook W. Bracey
• Inventors: Halbrook, W. Bracey
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): CAUDLE, PENNY L
• Application Number:
  US09/237,630
• Time in Patent Office: 294 Days
• Field of Search: 705/38, 705/35, 705/36, 705/39, 707/503
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A financial management data processing system determines monetary amounts related to a loan. The loan consists of a base loan amount to be used by a borrower, for which a lender charges the borrower an interest amount at a loan interest rate over a loan term. The loan also consists of an investment loan amount to be invested in an investment that earns a return on the investment at a rate of return. Information input means are included for inputting the base loan amount, the investment loan amount, the loan interest rate, the rate of return on the investment, and the loan term. First data processing means (i) sum the base loan amount and the investment loan amount to produce a principal amount, (ii) determine the interest amount based on the principal amount, the loan interest rate, and the loan term, (iii) amortize the loan based upon the loan interest rate and the loan term to determine an interest payment amount and a principal payment amount, and (iv) determine a loan payment amount by combining the interest payment amount and principal payment amount. Second data processing means determine the return on the investment based on the investment loan amount and the rate of return on the investment. Third data processing means apply at least a portion of the return on the investment to reduce at least one of the principal amount and the interest amount. Output means display results of determinations made by the first, second, and third data processing means.

Claims

1. A financial management data processing system for determining monetary amounts related to a loan from a lender to a borrower, where the loan consists of a base loan amount to be used by the borrower and an investment loan amount to be invested in an investment, where the lender charges the borrower an interest amount at a loan interest rate over a loan term, and where the investment earns a return on the investment at a rate of return, the system comprising:

a) information input means for inputting the base loan amount, the investment loan amount, the loan interest rate, the rate of return on the investment, and the loan term;

b) first data processing means for;

i) summing the base loan amount and the investment loan amount to produce a principal amount,

ii) determining the interest amount based on the principal amount, the loan interest rate, and the loan term,

iii) amortizing the loan based upon the loan interest rate and the loan term to determine an interest payment amount and a principal payment amount, and

iv) determining a loan payment amount by combining the interest payment amount and principal payment amount;

c) second data processing means for determining the return on the investment based on the investment loan amount and the rate of return on the investment;

d) third data processing means for applying at least a portion of the return on the investment to reduce at least one of the principal amount and the interest amount; and

e) output means for displaying results of determinations made by the first, second, and third data processing means.

2. The financial management data processing system of claim 1, further comprising:

a) fourth data processing means for

i) creating a loan account that indicates the principal amount and the interest amount,

ii) reducing the principal amount as the principal payment amount is received, and

iii) reducing the interest amount as the interest payment amount is received;

b) fifth data processing means for creating an investment account that indicates the investment amount and the return on the investment; and

c) the third data processing means further operable to transfer at least a portion of the return on the investment from the investment account to the loan account to reduce at least one of the principal amount and the interest amount.

3. The financial management data processing system of claim 1 wherein the third data processing means are further operable to apply at least a portion of the return on the investment toward the loan payment amount.

4. The financial management data processing system of claim 3 wherein the third data processing means are further operable to apply at least a portion of the return on the investment firstly toward the interest payment amount, and, if the return on the investment exceeds the interest payment amount, to apply an excess of the return on the investment secondly toward the principal payment amount.

5. The financial management data processing system of claim 3 wherein the interest payment amount is separable into a first portion attributable to the base loan amount and a second portion attributable to the investment loan amount, and wherein the third data processing means are further operable to apply at least a portion of the return on the investment firstly toward the first portion of the interest payment amount, and, if the return on the investment exceeds the first portion of the interest payment amount, to apply an excess of the return on the investment secondly toward the second portion of the interest payment amount.

6. The financial management data processing system of claim 3 wherein the interest payment amount is separable into a first portion attributable to the base loan amount and a second portion attributable to the investment loan amount, and wherein the third data processing means are further operable to apply at least a portion of the return on the investment firstly toward the second portion of the interest payment amount, and, if the return on the investment exceeds the second portion of the interest payment amount, to apply an excess of the return on the investment secondly toward the first portion of the interest payment amount.

7. The financial management data processing system of claim 3 wherein the principal payment amount is separable into a first portion attributable to the base loan amount and a second portion attributable to the investment loan amount, and wherein the third data processing means are further operable to apply at least a portion of the return on the investment firstly toward the first portion of the principal payment amount, and, if the return on the investment exceeds the first portion of the principal payment amount, to apply an excess of the return on the investment secondly toward the second portion of the principal payment amount.

8. The financial management data processing system of claim 3 wherein the principal payment amount is separable into a first portion attributable to the base loan amount and a second portion attributable to the investment loan amount, and wherein the third data processing means are further operable to apply at least a portion of the return on the investment firstly toward the second portion of the principal payment amount, and, if the return on the investment exceeds the second portion of the principal payment amount, to apply an excess of the return on the investment secondly toward the first portion of the principal payment amount.

9. A financial management system, comprising:

a) determining a base loan amount,

b) determining an investment loan amount,

c) totaling the base loan amount and the investment loan amount to yield a total loan amount,

d) amortizing the total loan amount to determine an interest payment amount and a principal payment amount, which together equal a loan payment amount,

e) creating a base account,

f) funding the base account with the base loan amount,

g) creating an investment account,

h) funding the investment account with the investment loan amount,

i) investing the investment loan amount in an investment that provides a return on the investment, and

j) applying the return on the investment toward the loan payment amount.

10. The financial management system of claim 9, wherein the step of applying the return on the investment toward the loan payment amount further comprises:

a) applying the return on the investment firstly toward the interest payment amount, and

b) applying the return on the investment secondly toward the principal payment amount.

11. The financial management system of claim 9, wherein the system further comprises the step of applying the return on the investment thirdly toward prepayment of the total loan amount.

12. The financial management system of claim 9, further comprising:

a) receiving a payment equal to the loan payment amount, and

b) applying the payment toward the loan payment amount.

13. The financial management system of claim 12, wherein the step of applying the payment toward the loan payment amount further comprises:

a) applying the payment firstly toward the interest payment amount, and

b) applying the payment secondly toward the principal payment amount.

14. The financial management system of claim 12, wherein the system further comprises the step of applying the payment thirdly toward prepayment of the total loan amount.

15. The financial management system of claim 10, wherein the step of applying the return on the investment firstly toward the interest payment amount further comprises applying the return on the investment firstly toward a first portion of the interest payment amount attributable to the base loan amount and secondly toward a second portion of the interest payment amount attributable to the investment loan amount.

16. The financial management system of claim 10, wherein the step of applying the return on the investment firstly toward the interest payment amount further comprises applying the return on the investment firstly toward a first portion of the interest payment amount attributable to the investment loan amount and secondly toward a second portion of the interest payment amount attributable to the base loan amount.

17. The financial management system of claim 10, wherein the step of applying the return on the investment secondly toward the principal payment amount further comprises applying the return on the investment firstly toward a first portion of the principal payment amount attributable to the base loan amount and secondly toward a second portion of the principal payment amount attributable to the investment loan amount.

18. The financial management system of claim 10, wherein the step of applying the return on the investment secondly toward the principal payment amount further comprises applying the return on the investment firstly toward a first portion of the principal payment amount attributable to the investment loan amount and secondly toward a second portion of the principal payment amount attributable to the base loan amount.

19. The financial management system of claim 9, wherein the system further comprises a computer program disposed on a computer-readable medium, including steps to be performed on a computer.

20. A computer-readable information storage device comprising executable units for implementing a financial management system for determining monetary amounts related to a loan from a lender to a borrower, where the loan consists of a base loan amount to be used by the borrower and an investment loan amount to be invested in an investment, where the lender charges the borrower an interest amount at a loan interest rate over a loan term, and where the investment earns a return on the investment at a rate of return, the information storage device comprising:

a) a first executable unit for

i) determining a principal amount by summing the base loan amount and the investment loan amount,

ii) amortizing the loan based upon the loan interest rate and the loan term to determine an interest payment amount and a principal payment amount, and

iii) determining a loan payment amount by summing the interest payment amount and the principal payment amount;

b) a second executable unit for determining the return on the investment based on the investment loan amount and the rate of return on the investment; and

c) a third executable unit for applying at least a portion of the return on the investment to reduce at least one of the principal amount and the interest amount.