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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4
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3answers
392 views

How can I calculate yearly interest of my investment gain?

I'm trying to figure out the yearly interest of a potential investment. Lets say I invested $10 000, 13 days later i cash out and I now have $10 500. The interest here is 4,76% for 13 days. But can I ...
1
vote
1answer
64 views

When performing wash sale calculations does time of day matter?

For wash sales, I've read there is a 30-day window both before and after an opening trade during which a loss from a closing trade becomes a wash sale with respect to the opening trade's cost basis ...
1
vote
1answer
388 views

What are the standard industry practices or disclosures for computing compounded interest on retail deposit accounts in the United States?

I'm seeking to understand how my bank calculates the interest on my various deposit accounts (Money Market, Interest Checking, Savings, Certificate of Deposit) in order to simulate and predict it to a ...
3
votes
3answers
230 views

I'm a programmer and need a formula for calculating overal ROI [duplicate]

I'm programming a web app to track my hedge fund performance. I'd like to find my overall ROI for all time. If I had a beginning balance and my current balance then finding the ROI is easy. For ...
-1
votes
2answers
3k views

Choosing between two car deals on the same car - NPV

This is basic question, but I have starred myself blind on it - I am stuck. I am not sure which formulae I should use. Here is the story. I am looking to buy a car. I have found two dealerships ...
2
votes
2answers
426 views

How does this retirement fund calculator work?

I found a retirement fund calculator on web: Inflation rate: 2% 0% 2% 0% Expected return rate: 5% 0% 0% ...
3
votes
1answer
299 views

IRS returns more money than my calculation - how can I find out where I was wrong?

A couple of months ago I filed the 2012 tax returns. I was expecting a few thousands USD for a refund. Finally, the payment was received in my bank account, and I noticed that the actual refund was ...
3
votes
4answers
14k views

What's the formula to calculate the monthly or lump-sum investment amount for a desired future value?

Give the following values: Inflation Rate 2% Expected Return Rate 5% Future Value 1,000,000 monetary units Years to Target - 10 What is the formula to calculate the amount of? Lumpsum investment ...
1
vote
2answers
103 views

Why is that we discount all the coupons and par amount of a bond at the same rate?

Why is that we discount all the coupons and par amount of a bond at the same rate, our YTM? If we think of each coupon/par as a strip/single bond on its own, wouldn't then each coupon payment be ...
3
votes
2answers
243 views

Need a formula to determine monthly payments received at time t if I'm reinvesting my returns

I need a formula for how much money I will be receiving monthly and how much I will have in total for any time t (in months). The following is my scenario: I will be investing $900 monthly into a 3 ...
2
votes
2answers
2k views

How do I calculate the quarterly returns of a stock index?

I was reading an article and it stated something along the lines of (not accurate figures): Quarter | Stock Index % Change In Quarter Sep 2011 | 5.21 Dec 2011 | 4.69 Mar 2012 | 3.20 June 2012 | ...
3
votes
2answers
5k views

How to calculate Social Security benefits if retiring before the early Social Security age?

How can I calculate my Social Security if I retire before my early Social Security age? I tried to use the official website's calculator, but it required entering too much data, and the website ...
3
votes
1answer
9k views

How to calculate the closing price percentage change for a stock?

When viewing a stock on Yahoo Finance: ...
1
vote
1answer
114 views

What is the formula for the Tesla Finance calculation?

According to http://www.teslamotors.com/true-cost-of-ownership with the fields set to a rate of 3.3%, down payment 10% over a 72 month term, it calculates this to be $980/mo. How did they get there? ...
2
votes
2answers
3k views

What does Capital Surplus mean?

Given this information below, what does capital surplus mean? When does a capital surplus go up? What is the formula of capital surplus? I have read Wikipedia's definition, and it only seem to ...
3
votes
2answers
368 views

Annuities question - Equations of value

Chuck needs to purchase an item in 10 years. The item costs 200 today, but its price inflates at 4% per year. To finance the purchase, Chuck deposits 20 into an account at the beginning of each ...
2
votes
1answer
462 views

If I lose 20%, what rate of return do I need to break even?

If the account is down 20%, what rate of return over the next year do we need to get to be even, in other words make back the 20% we lost? The rate of inflation in this case is zero.
3
votes
2answers
142 views

Method for calculating the wisest amount of liability to purchase for car & home insurance?

I've seen the advice to get enough liability insurance as you have in total assets, i.e. if your owned home, owned car & savings = $100,000, then get $100,000 liability coverage. What is the ...
2
votes
1answer
7k views

How do you calculate the P/E ratio by industry?

I would like to know how to calculate the P/E ratio by industry. On this website, it displays the P/E ratio for the current stock, the industry and the sector: FINANCIALS DTV.O ...
1
vote
1answer
199 views

Calculating required rate of return for an income-generating savings account

Say someone has £1m. They want it to generate an increasing level of income, starting from £25k in year 1, and increasing at a rate 7% + inflation pa, such that the end value of the savings after 20 ...
2
votes
1answer
6k views

How to determine the final value of a U.S. Savings Bond at maturity?

Is it possible to determine the "final" value of a U.S. Savings Bond on its maturity date? The interest rate is fixed, the compounding periods are known (semi-annually for EE bonds), and the term is ...
3
votes
3answers
1k views

Negative properties of continuously compounded returns

I'm taking an intro to quant finance course online. I'm trying to better understand the properties and uses of continuously compounded returns. Specifically for this question, how can you have ...
0
votes
1answer
539 views

How do I calculate sales tax to many items? [duplicate]

I'm wondering how to calculate sales tax when this situation. Item price is 14.97 and quantity is 7. Sales tax is 9%. 14.97 * 7 * 0.09 = 9.4311 = 9.43 14.97 * 0.09 = 1.3473, rounding up: 1.35 * 7 = ...
2
votes
3answers
539 views

What is the optimal way to calculate tax: apply tax to each item, then sum the prices, or sum the prices, then apply tax? When are prices rounded?

What is the optimal way to calculate tax? Lets say tax is 7.5% or 0.075. $2.32 X 1.075 = 2.494 --> Rounded: $2.50 You can say that item is $2.50 (tax included) and if you have two items: ...
7
votes
3answers
5k views

In the event of a corporate spin-off, how can I calculate the correct cost basis for each company's shares?

Consider this example: Siemens is going to have a spin-off (next Monday). If I owned, say, 10,000 shares of Siemens bought at an average price of 80 euros, my cost would be 800,000 euros. In the ...
2
votes
2answers
3k views

How to calculate dividend yield for the Dow Jones Industrial Average (DJIA) index?

This should be fairly straightforward. How do I calculate the dividend yield myself for the Dow 30 / Dow Jones Industrial Average (DJIA)? I'm thinking I just add the last dividend for all the ...
3
votes
3answers
296 views

What is the theory behind Rick Van Ness's risk calculation in the video about diversification?

In the video, Rick Van Ness states the following scenario: Stock A has a 7% return with +/- 1% risk Stock B has a 3.5% return with +/- 0.5% risk Stock A and B are perfectly negatively correlated. ...
1
vote
1answer
1k views

How do I calculate the total return on a bond series given its yields?

How do I calculate the total return on a bond series given its yields? Is there an equation? I looked at this Investopedia article, but it only refers to stocks in general.
-4
votes
3answers
1k views

Why does the calculation for percentage profit vary based on whether a position is short vs. long?

In this link here, the point: In a market in which upswings are likely to equal or exceed downswings, heavier position should be taken for the upswings for percentage reasons - a decline from ...
4
votes
1answer
71 views

How is the dividend payment calculated when an asset is disposed on the ex date? [duplicate]

Example: XYZ Corp pays a $0.25/share dividend - Ex date=1/15/13, Pay date 1/31/2013 I own 100 total shares of XYZ on 1/1/2013 I buy 50 shares of XYZ on 1/15/2013 at 12 PM (increasing shares to 150) I ...
11
votes
2answers
3k views

Is there a term that better describes a compound annual growth rate (CAGR) when it is negative?

When calculating rates of return for an investment or portfolio over time, whether to report or compare performance, one frequently calculates the Compound Annual Growth Rate (CAGR). I've got a ...
7
votes
3answers
5k views

Value of Pension in regards to salary negotiations

I've been advised from careers.stackexchange to post this question here as it's more financial than career advice. I've received a job offer from a company and I'm looking to make a strong ...
5
votes
1answer
312 views

Comparing pre-tax versus post-tax health expenses?

I understand the concepts from this question and everything I have read says that the benefit of pre-tax expenses are that they reduce your taxable income. But to keep the math simple, let's say ...
3
votes
2answers
2k views

Calculating Profit Ratio (Gross Margin)

When looking at a company's income statement to calculate the Profit Ratio (Gross Margin) PM = Net Profit / Sales Do you include "other" revenue in the equation? Example: XYZ Ltd Income Statement ...
2
votes
1answer
285 views

How do I calculate the interest on my deposits to my landlord?

I was renting from this company called harbor house builders. I started renting from them in 2009 and at that time I was renting an apartment at 650 a month so I put 650 for rent and 650 for deposit. ...
4
votes
1answer
782 views

How to calculate average drawdown of a trading system?

Let's say that I'm trying to evaluate a FX trading system. I know how to calculate the largest drawdown during a period of time, but how can I calculate the average drawdown or the average largest ...
-1
votes
1answer
506 views

How do I calculate the dividend yield for Disney Co?

I'm trying to "estimate" the dividend yield for Disney (NYSE:DIS). Let's pretend stock price will stay at $57 and the tax rate is 1%. Is it really the case that after 3 years with this stock the ...
7
votes
3answers
3k views

How do you do inflation calculations and estimates?

I'm an engineer, not an accountant so I have no idea what formulas to use (or even the proper terms to google for). I've looked around on a couple of google results, but most of the explanations just ...
12
votes
1answer
12k views

“Out of Pocket Maximum” and health insurance plan terminology & calculation?

I'm trying to understand the terminology on my health plan. I've read numerous websites, which have only confused me more, as they fail to use examples (more than one should be required) for people ...
0
votes
1answer
93 views

Should total revenue or profit be proportional to money x investment time

I'm currently supervising a project with investors, and the following problem arrived: - How should I calculate the profits of each investor, i.e. should profit itself (after taxes and other ...
2
votes
2answers
1k views

What is the effective interest rate on a credit card that offers 0% interest with a 4% balance transfer fee?

I'm about to do a balance transfer that has a fee of 4%. It gives me 0% interest for 14 months. Is it just a straight calculation of 4% for the year or is there another calculation that I need to ...
5
votes
1answer
1k views

What's the equation for savings growth, that considers contributions?

I'm looking for the equation that basically works like this "Assuming you have X saved, and save Y more a year, and your savings grow at Z percent, you will have S after T years."
2
votes
1answer
304 views

Recurring deposit interest calculation compounding period rule in India

Is there any RBI guideline or rule or guideline available for Recurring Deposits interest calculation compounding period for Indian Banks. I find it different for different banks in India and the ...
0
votes
1answer
147 views

Put-Call parity - what is the difference between the two representations?

I have seen these two terms for put-call parity: S + P = C +Ke^(-rT) S + P = C + K/(1+r)^T Which one is the correct formula? When to use each of them? What is the diffrence?
4
votes
1answer
4k views

Calculating the profit earned from a leveraged futures contract

How do we calculate the profit/loss of Futures contract? For example, If I had a Futures contract that had $10 000 as the underlying, it had $1000 margin and the Futures contract itself was worth $3. ...
5
votes
3answers
436 views

Dealing with fractions of a penny

If my car insurance was £1200.01 per year, I could end up being charged £100 + 1/12p per month. I know that's not how it works, the extra penny is kept whole and goes on a specific month instead. ...
10
votes
4answers
440 views

How do you go about calculating how much you need after retirement?

I am posting this question after reading this article on WSJ, where it says: Just 42% of working-age Americans have even tried to calculate what they will need in retirement, according to the ...
4
votes
5answers
6k views

Time-Weighted Rate of Return & Money-Weighted Rate of Return

Background I am trying to figure out the computational difference between Time-Weighted Rate of Return (TWRR) and Money-Weighted Rate of Return (MWRR). Let's say, I have a portfolio looking like ...
8
votes
2answers
2k views

Continuous compounding in practice

A common explanation for the mathematical constant e (2.71828...) is that it is the factor by which an investment would grow at 100% interest rate over a period if it is continuously compounded. In ...
1
vote
1answer
233 views

Find monthly interest rate from principal, monthly payment, and loan's term?

Is there a formula to find the monthly interest rate required on a compounded interest fixed-rate mortgage loan, given the principal, the monthly payment, and the loan's term?