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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3answers
499 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
4k 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
2k 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
254 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
69 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 ...
10
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
4k 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
300 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
267 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. ...
7
votes
3answers
2k 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 ...
11
votes
1answer
11k 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 ...
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 ...
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
404 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
436 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 ...
7
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
226 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?
1
vote
1answer
535 views

Rate of return of stock index

One can always see on the news for example, the movement of stock indexes. Say for example: S&P +5.15 (0.05%) or S&P -0.57 (0.001%) But how would I calculate the 2 numbers above? (+5.15 and ...
4
votes
1answer
2k views

What does the “SEC 30-Day Yield” mean for a Bond ETF?

I'm currently a student awaiting admission into grad school and have about $10,000 in a Scott Trade account ready to invest. Because I'll be using the money to pay for moving expenses and anything ...
4
votes
4answers
19k views

What Excel function to use to calculate the return or interest rate on a savings account?

I'm getting confused by Excel's various different financial functions. Which one would I use to answer the following two questions and how? Suppose that on October 1st, 2012 I open a savings account ...
3
votes
3answers
426 views

Rules of thumb for present value of retirement funds given current age and income?

I know the general rule of thumb is you should save 15% of income to retirement, but I'm playing catch-up after years of neglect and contributing 25% until I catch up again. But how will I know when ...
6
votes
2answers
205 views

Help understanding credit card interest

I have a credit card with an outstanding balance and I am trying to work out when I will complete paying it off. It is a UK credit card (where I am based) and I do not spend on it. I pay 150 per ...
4
votes
1answer
491 views

How to determine the interest rate?

I'm really not good at math. So please forgive me for this noob question that I have.. Just trying to learn basic percentage calculation with money lending.. Here's an example of how the APR ...
1
vote
2answers
331 views

Having trouble with APR calculation

I am using the formula listed on the following site to try to calculate APR: http://www.fdic.gov/regulations/laws/rules/6500-1950.html#fdic6500appendixjtopart226 go to appendix J, if it doesn't auto ...
2
votes
2answers
58 views

Is there a program out there that will give you details for paying X extra per month?

I've got about 6 loans or so with different payoff times and interest rates. My general strategy is to calculate how much I'd save by paying an extra X per month, always directed towards the loan with ...
1
vote
1answer
121 views

Calculating payoff date and monthly payment for a school loan?

How can I verify the minimum monthly payment number and how it breaks down into principal vs. interest if all I know is the current balance and interest rate? How can I determine the payoff date of ...
4
votes
3answers
557 views

Trying to figure out my student loans

Please let me know if this is too much information/perhaps unsafe private information to reveal. I am trying to understand the finances behind this stuff and what I can do to get rid of my loans ...
1
vote
1answer
121 views

How to calculate what i need to pay each month in a annuity type of loan?

Good or bad, how do get to the same number as the bank web calculator do with the following data: Money loaned: 2 500 000 Interest: 3.5% Effective interest: 3.6% Fee (each payment): 50 Number of ...
4
votes
3answers
581 views

2 houses 450k each or one 800k?

I currently have a house worth about $450k. I'm thinking of upgrading. Upgrade is mostly for location and I can find a house in the location I want for around $450 to $500k. What is a better option ...
9
votes
2answers
322 views

How much is enough to save as a rainy-day fund before I start plugging my higher-interest student loans?

Typically, what is considered realistic? 6 months expenses? A year? I understand this is more of an "opinion" question but I am still curious what people think is a responsible buffer (in the event of ...
2
votes
4answers
11k views

Is there a mathematical formula to determine a stock's price at a given time?

I have been trying to find exact information on how stock prices are determined but still I haven't found any exact mathematical formulas how it happens. Wikipedia states: When prospective buyers ...
1
vote
2answers
280 views

How can I determine the interest rate, given increasing monthly deposits and a final amount?

I need help to determine the interest rate of this investment. The initial value is nothing The monthly investment is R500. It stays R500 a month until the year is over and increases by R50. Thus, ...
5
votes
2answers
7k views

Calculate Future Value with Recurring Deposits

I am familiar with the formula for calculating FV and compound interest of a deposit, but I am wondering if there is a formula that will allow me to calculate how much money I will have after ...
3
votes
1answer
10k views

How to calculate the interest on my security deposit to my landlord?

Quoted from http://www.oag.state.md.us/Consumer/landlords.htm#deposits, here is the way to calculate the interest on security deposit a landlord in Maryland pays to his tenant: The landlord must ...
3
votes
2answers
504 views

How are minimum payments calculated for auto loans, education loans, etc.

I'm working on a calculator and I have a good handle on Mortgages (amortization) and Credit Cards (daily average, apr, multiply between 3-5%), but I'm not sure how to calculate minimum payments for ...
5
votes
2answers
5k views

What is the equation for an inflation adjusted annuity held in perpetuity?

What is the equation relating an initial investment, a fixed rate of return, an inflation rate, and a perpetual payment adjusted for that inflation rate?
-1
votes
1answer
165 views

fixed income calculator

where can I find a fixed income investment calculator? How much income can I expect monthly if I try to live off the interest alone? Are there any penalties for switching investment strategies?
1
vote
1answer
208 views

Calculate APR for under 1 year loan

I was talking with a friend about Payday loans (neither of us is getting one, just merely curious) and the APRs they state aren't really true. So, I was trying to figure out an APR based on the ...
1
vote
1answer
668 views

How to calculate lump sum required to generate desired monthly income?

Suppose my monthly expenses are $500. I want to ask a charity foundation to finance my scientific research by one-time payment intended to cover all my monthly expenses during my lifetime. How to ...
4
votes
2answers
451 views

Formula to decide when to break a Certificate of Deposit (CD)?

I'm trying to create a certificate of deposit (CD) comparison tool and have been working on a formula to compare a CD with a higher interest rate to a CD I might own with a penalty period. I believe ...
2
votes
4answers
2k views

How to calculate money needed for a retirement based on an hypothetical death date & expenses?

I would like to know what formula or tool I need to use to calculate the capital needed for a hypothetical retirement that will start at date X and end at date Y. Here is an example: Variable1 = ...
2
votes
1answer
155 views

How to calculate outstanding Graduate Plus Loan balance currently in deferment?

Can someone tell me what I'm doing wrong here? If I have a $56,500 loan and the interest rate is 7.9% how much will I owe after 8 months? I thought this would be fairly simple. I would ...
3
votes
3answers
14k views

How to calculate stock price (value) based on given values for equity and debt?

If a company has $80 million in equity and $20 million in debt, this means that total firm value = D + E = $100 million. Am I then right to assume that if there are 1 million shares outstanding, then ...
7
votes
5answers
50k views

How do I calculate net monthly salary (after taxes) in Germany?

If I were to say that my yearly, gross salary was 50,000 euros, then what would be my monthly net after-tax income? For example, this calculator looks OK to me: ...
4
votes
2answers
870 views

How does the Dow Jones Industrial Average (DJIA) divisor change to account for dividends?

The DJIA is a price-weighted index tracking of 30 companies chosen by the Dow Jones Company. It takes the current share price of these 30 stocks and divides by a specific number called the divisor. ...
7
votes
3answers
2k views

Is interest of credit cards caculated based on the amount unpaid within the grace period?

From Wikipedia if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained ...
0
votes
2answers
565 views

Formula for recalculation of a bad loan, i.e. where payments were missed?

I need to know if exists any formula to calculate interest rate, principal interest, total amount to be paid, in the case of a bad loan. Ex: In a bank exists a 20 year home - loan. The client was ...