Blog posts

Loan repayment structures

In this post, we will discuss the two main types of loan repayment structures and build sample loan schedules using the cashflower package.


List of content:

  1. Repayment structures
  2. Equal payment loan schedule
  3. Equal principal loan schedule

Repayment structures

There are two main types of loan repayment structures:

  • equal payment loan (annuity loan),
  • equal principal loan (fixed principal).

Equal payment loan (annuity loan)

The total monthly payment is fixed (the same amount every month). Initially, a larger portion of the payment goes towards interest and a smaller portion towards the principal. Over time, as the outstanding loan balance decreases, more of …

CashflowerHub - concept presentation

In this blog post, I'll share the concept behind CashflowerHub, an application designed to be a central place for actuarial models, runs, and documentation. Currently, CashflowerHub is in its early development stages, with the core features being outlined.

CashflowerHub combines three key elements needed for effective actuarial reporting:

  • cashflow models,
  • runs,
  • documentation.

The idea is to bring these parts together in one place, saving time and making things easier to manage.

Models

The "Models" page lists all the cashflow models owned by a company. Users can add, edit, and delete models as needed.

Print screen of the 'Models' page.

When viewing a specific model, users …

Best actuarial books

In this post, we want to share a list of some of the best actuarial books that helped us understand actuarial science better. This is just our personal list, but we think these books are great for anyone studying or working in the field.

Is there a book you think should be on this list? Let us know in the comments or use our contact form.

"Actuarial Mathematics" by Bowers, Gerber, Hickman, Jones, Nesbitt

Cover for the book Actuarial Mathematics.

This book was recommended to me when I started learning about life insurance, and it's often called the "actuarial bible". Some chapters were very useful …

Annuity immediate vs annuity due

The main difference between an annuity immediate and an annuity due is when payments are made. For an annuity immediate, payments are received at the end of each period, while for an annuity due, payments are received at the beginning of each period.

It's also important to distinguish between annuities and life annuities. Regular annuities provide payments for a set period, whereas life annuities make payments only as long as the policyholder is alive.

Annuity immediate

In an annuity immediate, payments are made at the end of each period.

Present value

To find the present value of an annuity immediate, …

AI Chatbot for Actuarial Modelling

AI chatbots, such as ChatGPT, are shaping the way we work. Personally, I find them useful, especially for refreshing my memory on programming syntax.

Given that cashflower is an open-source package with documentation available online, I decided to explore if an AI assistant can be used to help with actuarial modelling. In this post, I will share my findings.

Knowledge cut-off date

AI assistants have a knowledge cut-off date, meaning they are trained with information up to a specific point in time. The cashflower package is relatively new, so the AI assistant might not know about it. Sometimes, AI can …