Interest calculation tool

• US 7,499,884 B2
• Filed: 12/22/2003
• Issued: 03/03/2009
• Est. Priority Date: 09/30/2003
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP AG (SAP SE)
• Inventors: Dueppers, Johannes Gustav
• Primary Examiner(s): Poinvil; Frantzy
• Assistant Examiner(s): Graham; Clement
• Application Number:
  US10/740,859
• Publication Number:
  US 20050071398A1
• Time in Patent Office: 1,898 Days
• Field of Search: 705 35- 38, 705/5
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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

Embodiments of the present invention relate to a computer-implemented method and system for performing interest calculations on account balances. The calculations may be based on time intervals of less than a day, and using time parameters defined in terms of seconds.

Claims

1. An automated method for calculating interest for an account over a selected time interval, comprising the steps of:

at an interest calculation module, responsive to a request from an account management application to calculate an interest, performing the following steps;

receiving electronically from the account management application, calculation period data, including a start point and an end point, each said point defined by date, hour, minute and second;

receiving electronically from the account management application, interest condition data, including at least a starting interest data point and optionally including one or more subsequent interest data points, each said interest condition data point having associated therewith an effective interest rate and an effective time point defined by date, hour, minute and second;

based on the interest condition data, forming electronically one or more effective interest rate intervals;

receiving electronically from the account management application, valuation date data, including one or more valuation points after said starting date and not exceeding said ending date, each said valuation point defined by date, hour, minute, and second, and having associated therewith an account balance;

ordering electronically said effective interest rate intervals and valuation points in a time sequence;

forming electronically valuation intervals defined by said effective interest rate intervals and valuation points, each said valuation interval having associated therewith an effective interest rate and an account balance; and

for each said valuation interval, calculating electronically an interest and returning the calculated interest from the interest calculation module to the account management application.

2. The method of claim 1, further comprising:

for each said valuation interval, determining electronically a number of seconds in the interval;

calculating electronically the interest on the account balance based on the number of seconds in the interval; and

returning electronically the calculated interest from the interest calculation module to the account management application.

3. A method comprising:

at an interest calculation module, responsive to a request from an account management application to calculate an interest, performing the following steps;

defining electronically a calculation period for the calculation of interest on an account balance, wherein at least one of an effective interest rate and an account balance changes during the calculation period;

dividing electronically the calculation period into intervals, where for each interval both the effective interest rate and account balance are constant;

determining electronically a number of seconds in each interval;

calculating electronically an interest on the account balance for each interval, based on the number of seconds and the effective interest rate for the interval; and

returning electronically the calculated interest from the interest calculation module to the account management application.

4. The method of claim 3, further comprising recording electronically a result of the calculation.

5. A machine-readable medium storing computer-executable instruction to implement an automated method for calculating interest for an account over a selected time interval, the automated method comprising the steps of:

at an interest calculation module, responsive to a request from an account management application to calculate an interest, performing the following steps;

receiving from the account management application, calculation period data, including a start point and an end point, each said point defined by date, hour, minute and second;

receiving from the account management application, interest condition data, including at least a starting interest data point and optionally including one or more subsequent interest data points, each said interest condition data point having associated therewith an effective interest rate and an effective time point defined by date, hour, minute and second;

based on the interest condition data, forming one or more effective interest rate intervals;

receiving from the account management application, valuation date data, including one or more valuation points after said starting date and not exceeding said ending date, each said valuation point defined by date, hour, minute, and second, and having associated therewith an account balance;

ordering said effective interest rate intervals and valuation points in a time sequence;

forming valuation intervals defined by said effective interest rate intervals and valuation points, each said valuation interval having associated therewith an effective interest rate and an account balance; and

for each said valuation interval, calculating an interest and returning the calculated interest from the interest calculation module to the account management.

6. The machine-readable medium of claim 5, the automated method further comprising:

for each said valuation interval, determining a number of seconds in the interval;

calculating the interest on the account balance based on the number of seconds in the interval; and

returning the calculated interest from the interest calculation module to the account management application.

7. A machine-readable medium storing computer-executable instructions to implement a method comprising:

at an interest calculation module, responsive to a request from an account management application to calculate an interest, performing the following steps;

defining a calculation period for the calculation of interest on an account balance, wherein at least one of an effective interest rate and an account balance changes during the calculation period;

dividing the calculation period into intervals, where for each interval both the effective interest rate and account balance are constant;

determining a number of seconds in each interval;

calculating an interest on the account balance for each interval, based on the number of seconds and the effective interest rate for the interval; and

returning the calculated interest from the interest calculation module to the account management application.

8. The machine-readable medium of claim 7, the method further comprising recording a result of the calculation.

9. An interest calculation application adapted to respond to a request from an account management application to calculate an interest, comprising:

a variable interest rate generation module, adapted to;

receive calculation period data, including a start point and an end point, each point defined by date, hour, minute and second,

receive interest condition data, including at least a starting interest data point and optionally including one or more subsequent interest data points, each interest condition data point having associated therewith an effective interest rate and an effective time point defined by date, hour, minute and second, and

form one or more effective interest rate intervals based on the interest condition data;

an interest calculation module, adapted to;

receive valuation date data, including one or more valuation points after the starting date and not exceeding the ending date, each valuation point defined by date, hour, minute, and second, and having associated therewith an account balance;

order the effective interest rate intervals and valuation points in a time sequence;

form valuation intervals defined by said effective interest rate intervals and valuation points, each valuation interval having associated therewith an effective interest rate and an account balance; and

calculate an interest for each valuation interval.