A generic tag to understand the calculations in a specific case. Please give out a sample illustration and ask a specific question. Ideally should also be accompanied by specific subject tags like "credit-cards", "savings-account", "index-funds" etc.

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2
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2answers
119 views

How to calculate the number of months until a loan is paid off (given principal, APR and payment amount)?

Does anyone know what formula they use for this When will you be debt-free? calculator? I want to put it in a Google Spreadsheet, but I can't find a payments-to-debt-free formula using my Google ...
0
votes
1answer
68 views

Calculate APR from balloon loan

I need formula to calculate nominal APR from balloon loan with contract fee. The initial data and payment schedule is: Loan sum: 10 000€ Interest rate per year: 15% Loan period: 2 years Payments ...
1
vote
1answer
32 views

How to calculate the value of a bond that is priced to yield X%

I am currently practicing for a beginners exam in finance. One of the previous exams had the following question: You own a 2 year, £1000, 7% bond, with semi-annual coupons. If the bond is priced ...
1
vote
2answers
61 views

How to calculate interest gained by paying off credit card right before the due date and not earlier?

By not paying off the credit card statement amount right after it is generated but closer to the due date, the same funds can be in a savings account generating interest. I'd like to know precisely ...
1
vote
3answers
70 views

Calculating interest accrued with extended Initial Payment Date

I'm wondering how do I calculate the interest accrued if the intervals aren't perfect. For example Principal - $100,000 Interest - 8% Compounding monthly Disbursal Date - January 1st, 2016 Initial ...
0
votes
0answers
16 views

How can I calculate the spot rate for a given time period, given the discount rate for that same period?

I have a time period of .353 years, for which I have found a discount rate of .926142. How can I use this information, and only this information, to find the spot rate? Similarly, for a time period of ...
2
votes
3answers
117 views

How to calculate new price for bond if yield increases

I am learning for a class that is partly about finance and I don't have any background in finance at all. I am struggling with a question that was asked in last years exam: A bond trades at £1015, ...
0
votes
2answers
34 views

Calculating Future Value: Initial deposit and recurring deposits of a fixed but different Value

Following scenario: I open a savings account and I deposit 1,000 USD. Now, every year I deposit another 100 USD. The interest rate is 5%. I want to know how much money will be on that savings account ...
1
vote
1answer
44 views

How do I calculate the past value of a loan?

I have a loan that was originally $100,000. It is worth $116,971.41 today. It has been accruing 6% annual interest, compounded daily. I do not know the start date. How do I calculate what the value ...
1
vote
1answer
35 views

Compound Rate as a Function of Market Interest Rate

I have these two pictures from Investopedia. Here is the link to the page. I am confused by this concept. How is the quarterly compound rate 11.825% with a 12% annual rate? Furthermore, how is ...
-1
votes
1answer
45 views

compute the principal and interest for a specific month (period) on an amortized loan

I can easily compute the monthly payment for a loan given the amount, the number of periods, and the periodic rate. From that, I can easily build an amortization table iteratively by subtracting the ...
-1
votes
1answer
52 views

Does a one time additional payment reduce the interest paid on a Prosper or Lending club personal loan

I have a loan with Lending Club with a certain interest rate. So every month I pay the principal as well as about $200 in interest. Assuming the loan balance left is $20000 and the interest rate is 7%,...
0
votes
0answers
16 views

How to calculate yield to maturity on Excel

Excel has a function RATE, which seems to work fine if your yield to maturity is an integer. However, in real life, maturity of the most bonds we handles do not have have maturity which exactly 6 ...
6
votes
2answers
243 views

What is the formula for the monthly payment on an adjustable rate mortgage?

Can people tell me how monthly payments are calculated when a mortgage has an initial rate? What is the formula? I have seen online calculators but not formulae. My guess is: We assume that the ...
0
votes
0answers
35 views

UK funds charges and how often interest is credited

I have two questions regarding funds in the UK. When I read a return p.a. of a fund in the UK from a website such as trustnet.com, do I have to calculate the return minus ongoing charges (OC) to ...
5
votes
1answer
143 views

Cash Advance causes recurring interest fee after paid in full

In January I made a cash advance of $110 with my credit card. In Februaury, I paid off January's balance (+$10 cash advance fee +$1.82 cash advance interest) in full by the statement due date. This ...
-1
votes
1answer
76 views

How to calculate take home salary in Sacramento, California? [duplicate]

How can I calculate my take home pay in Sacramento area in California? I have an offer of USD 95,000 per year in Sacramento. After searching multiple sites for tax calculations, I understood that it ...
2
votes
1answer
53 views

How to calculate the effective interest rate of a loan that must be paid back with interest as lump sum

An example question asks: Student Bank has agreed to lend you funds to complete the last year of your degree. The bank will lend you $2,400 today, if you agree to repay a lump sum of $4,000 in ...
2
votes
2answers
96 views

How to calculate multiple debt payments with additional lump sum and varying additional monthly payments

I'm attempting to create a calculator that I can use to try different debt repayment scenarios. If I have multiple debts with different rates I'm wondering what algorithm to use to figure out how long ...
-3
votes
1answer
35 views

Dividends Growing Faster than Cost of Capital

If a share's dividends are assumed to be indefinitely growing faster than the cost of capital (discount rate) then the net present value of all future dividends for the share can be shown to be ...
1
vote
2answers
50 views

Calculating theoretical Present Value

If I were to win the lottery and the present winnings were less than twenty million paid out over a time period of twenty years, how would I theoretically find the present value amount?
4
votes
3answers
142 views

How to know how much interest paid per payment in a fixed tenor personal loan

I recently took up a personal loan. I do not have any financial background and I do not have any issue paying the loan but I am just curious on how they come out with some numbers. To be precise, the ...
-1
votes
1answer
32 views

How can I retrieve any weights from the portfolio on the EF?

Efficient Frontier image In an efficient frontier build with sample moments, I'd like to retrieve weights from any portfolio on the efficient frontier knowing only the standard deviation and the ...
0
votes
1answer
71 views

How to find leverage for futures [closed]

In my understanding, leverage is the risk we take for our investment. That is highly leveraged instruments have high risk and high potential reward. But how can we calculate leverage of futures? ...
2
votes
1answer
33 views

How to compute real return including expense ratio

I am currently hesitating between 2 similar International Index Fund, FSIVX and FIENX. FSIVX have an expense ratio of 0.12% while FIENX have 0.63%. I can try to compare them side by side on google ...
-2
votes
1answer
121 views

Predicting future expenses

I'm trying to develop a tool that predicts my future expenses based on my past expenses. Example: I've spent $150, $200, and $180 on fuel during each of the last three months. Accounting for the ...
0
votes
1answer
57 views

How do I calculate the Present Value of a future amount

I have a requirement to calculate the present value of a future value taking into consideration an interest rate and tax rate. This is to be used in an insurance calculator so I need the answer to be ...
5
votes
1answer
170 views

How do I determine how long it will take to pay off my all my loans?

Right now I have a spreadsheet with the loans I have, the interest rates the are each at, and how much I am putting toward each in monthly payments. I then calculate how long each loan will take to ...
3
votes
1answer
294 views

How to find an optimum linear combination of various investments?

Say an investor with 1 million dollars want to put his money on several investments. Say investment outcomes on those investments are $x_1, x_2, x_3, x_4, ... x_n$ The investor need to put w1 on x1, ...
0
votes
1answer
144 views

How to calculate depreciation?

I am not accountant and my question could be trivial but I will ask it. Let's say that I bought a car that cost $50,000. The maintenance cost over 5 years is $25,000. The revenue of the car over 5 ...
0
votes
1answer
55 views

Why Are Percentage Gains Used for Capital Gains Tax Calculations?

In the context of UK investments, I'm led to believe that encashing a general investment account (OEIC/UT) can result in a capital gains tax liability. My understanding is that when calculating this ...
4
votes
1answer
60 views

How do I calculate the modern-day value of pre-euro currencies (inflation correction)

I'm trying to calculate the modern value of 1950's Dutch guldens (guilders). Usually I'd use Wolfram Alpha for such a task, but it doesn't seem to understand pre-euro currencies. This works fine: ...
3
votes
1answer
80 views

Does the Social Security taxable wage cap also cap payouts, not just contributions?

I recently saw Bernie Sander's quote: Right now, Trump pays the same amount of money into Social Security as someone who makes $118,500 a year. Time for a change. Now this seems to be true. ...
4
votes
5answers
848 views

If you buy something and sell it later on the same day, how do you calculate 'investment'?

Source: p 603, A Concise Introduction to Logic (12 Ed, 2014) by Patrick Hurley A similar misuse of percentages is committed by businesses and corporations that, for whatever reason, want to ...
3
votes
3answers
173 views

How do I calculate the starting balance required

Suppose I require a payment of $25,000 per year over 20 years, with an inflation rate of 3%, an earning rate of 5%, a tax rate of 20% and a final balance of $0. What is my starting balance to achieve ...
1
vote
1answer
85 views

How to calculate mutual fund return

How do you calculate the annual return of a mutual fund? I understand roughly how mutual funds work, and I'm trying to decide which mutual funds to invest in, but to prove to myself that I understand ...
2
votes
3answers
122 views

Simple Interest to Compound Interest

In simple annual interest terms 60/2000 is 3%. But what is the rate if this is the total interest paid on 2000 after monthly compounding over 3 years?
1
vote
1answer
150 views

IRR vs. Interest Rate

I'm working on a project, and I have problems with the understanding of certain areas. I don't understand why the increase in interest rates increases the IRR? Could someone explain this to me?
-3
votes
1answer
45 views

Can I evaluate the performance of a company using just OHLC data?

Is there any way to calculate finance for a company if I have Open, Close, Low, High, Adjusted Value of stocks and it's trade volume in each day, for 6 months? I read many ways to calculate the ...
4
votes
2answers
150 views

How to recalculate an amortization table after making a large payment?

I have an auto loan I wish to apply a very large amount to. I have a amortization table that shows me details for each payment I make. Here's where it gets complicated... My lender does not allow ...
2
votes
2answers
126 views

Compounded Interest on Mutual Funds

I may be missing or misunderstanding something regarding how compound interest works with mutual funds and ETFs. Let's say I have $10,000, and I invest said monies in mutual fund XXXXX at $100/share, ...
9
votes
2answers
209 views

Does the history of credit utilization affect FICO score?

Most people are aware that the debt to credit limit ratio is a vital part of the FICO score. The FICO score is updated every time new information is received by the credit bureaus. However, is it ...
0
votes
0answers
35 views

Calculate rate of return

If I sell my bond at $982, then reinvest it with market rate of 12% Coupon is $100, face value is 1000, what would be my rate of return my 2nd year? Yield to maturity is 2 years. I've calculated my ...
2
votes
2answers
168 views

How would I compute the difference between purchase and lease-to-purchase offers?

I'm looking at getting a new car, and this Toyota Avalon lease deal seems like a better deal then buying. However, I've always heard that leases are not the smart way to go. When I do the math the ...
2
votes
1answer
50 views

Why do dividend reinvestments not match my calculator?

I've seen this occur numerous times in my IRAs. In the transaction section of my Fidelity IRA, it shows a line item Reinvestment XXX with a dollar amount. Clicking the details will display the ...
9
votes
3answers
1k views

Overpaying on mortgage - How is term reduction calculated?

Just for some example figures: Original Term: 25 Years Loan Amount: £100,000 Interest rate: 2% I'm trying to make an excel table which keeps track of my mortgage payments including overpayments. ...
4
votes
2answers
196 views

How do you calculate the annualised return of your portfolio from the annualised returns of each of your funds?

I've invested in a number of mutual funds, and I've calculated the annualised return of each of them, using a spreadsheet (and the xirr function). I want to calculate the annualised return of the ...
2
votes
2answers
46 views

Calculation for Hypothetical Short Position

I'm trying to calculate the gain on a short position. I think I have the correct calculation, I just want to make sure I am correct. Here's the data: 1. Entered position with stock price at $28.07. ...
1
vote
0answers
35 views

Add-On CD Formula

I'm starting to learn a lot about finance/investing on my own but I'm struggling with the calculations behind Add-On CDs. I opened an 14-Month Add-On CD with a $1000 deposit with a monthly $30 add-on ...
11
votes
1answer
718 views

Why might Social Security employee deductions from paycheck vary across pay periods?

What percentage of salary deducts for an employee's Social Security contribution? And why will there be a difference in % deducted? My salary statement for October and September 2015 has the same ...