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Whole Life Banking – Rate Linkage & Loan Calculator

Whole Life Banking – Rate Linkage & Loan Calculator

Simplified: edit only core drivers. Rates and payments are calculated automatically. Results show Net Financial Assets = Savings/Cash Value − Loan Balance over 30 years (monthly compounding). Educational model only.

1) Fed Rate Linkage Inputs

Discount ⇄ Funds ⇄ Prime
How this works: Funds = Discount − (Discount→Funds spread). Prime = Funds + (Funds→Prime spread). Presets just fill typical spreads; you can override them for realism.

2) Savings / Cash Value (Monthly Compounding)

Editable growth rate
Savings/CV is modeled as: monthly deposit at month-end + monthly compounding. “Real” values use an inflation-adjusted growth rate for a purchasing-power view.

3) Loan Inputs + Rate Transmission (Auto)

Commercial vs Policy Loan
Auto-derived rates:
Bank loan rate = Prime + (Bank spread).
Policy loan rate = Funds + (Policy spread).
Payments are calculated with standard amortization.

Results (Simplified, Accurate Math)

30-year view
Compare Net Financial Assets
Definitions used:
• Savings/CV = starting balance + monthly deposits + monthly compounding.
• Loan balance evolves by amortization once the loan starts.
• Net Financial Assets = Savings/CV − Loan balance.

If you want “net worth including the purchased asset,” that’s a different model (you’d add asset value).
(Defaults to Nominal)

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