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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44 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 ...
2
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1answer
420 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.
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1answer
48 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: ...
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3answers
141 views

What is the meaning of “$N industry”?

For example, in the sentence "Semiconductor fabrication is a $100 billion industry.", what exactly is being said?
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3answers
103 views

In need of Algebra assistance

For some reason, my Algebra is getting rusty and I need help solving for the Purchase of the following: (Sale - Const - Purchase) / (Const + Purchase) = ROI
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1answer
34 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 ...
0
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2answers
402 views

Loan Amortization with Daily Calculation

I'm trying to solve this Loan Amortization Question. Principal = $125000 Interest = 8.5% Compounded semi annually Duration is 10 years (120 months) Monthly Payments Loan given on 7/31/2009 First ...
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2answers
117 views

Average interest rate vs compound interest rate

(1) Taking an average of %profit (2) Is calculating %profit by (end-start/start)*100 (3) Is (2) divided by 10 periods My questions are; What is the REASON why (1) and (3) are different values? ...
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3answers
563 views

Amortization Payments with a delay in initial payments

Typically a loan is disbursed and a month later is when payments are to be made. But there can be an agreement where it's to be delayed for a year or as short or as long as they want. I'm wondering ...
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0answers
67 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
273 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, ...
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1answer
117 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 ...
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1answer
48 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 ...
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1answer
39 views

Calculating long intervals of Interest with Simple Interest Formula

My last post Calculating long intervals of Interest calculates interest using compounding formula. But what about calculating simple interest accrued where the day count is actual/actual and it goes ...
3
votes
1answer
144 views

Question related to Public Provident Fund interest calculation

Consider the following extract from a newspaper article : The interest on your PPF balance is compounded annually, but the calculation is done every month. The interest is calculated on the ...
3
votes
1answer
49 views

Effective Interest Rate from bifurcated interest rate

Here goes, this is the scope of my question: Say I want to take out a credit card, that has 0% interest for 12 months, when at the 13th month, whatever debt is taken out on the card will be subjected ...
3
votes
1answer
73 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. ...
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5answers
830 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 ...
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3answers
4k views

If I earn 40 credits and stop working, would I get full Social Security benefits at age 67?

If I meet my 40 credit requirement in my 30s, and then left the States permanently and work at another country (and pay taxes there, not to the US), would I receive the full benefits when I become ...
3
votes
3answers
286 views

Can anyone help me understand my loan payment?

My loan was $40500 for five years with 9% interest per year. I do not understand the total I would have to pay. I have been paying 700 per month since 2006 and it feels like I've been paying forever. ...
2
votes
1answer
6k 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 ...
2
votes
2answers
451 views

Calculate the optimum contribution to Provident Fund(PF) account

I am fresh out of college and started working and want to work out how much I should contribute to my Provident Fund account to maximize the benefit from tax deductions. I am from India, so for those ...
30
votes
6answers
12k views

Should I pay an extra $100 every month on my mortgage or pay $1200 extra every year at the beginning of the year?

I can pay $1200 extra once a year or $100 every month - which is better? The first one does sound better, but for a 30 year mortgage, is it that significant? Say the mortgage is for $200,000. ...
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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, ...
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votes
3answers
150 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 ...
3
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2answers
93 views

Getting correlation from regression slope (Completely stumped)

This question is from a book (Active Portfolio Management), but unfortunately there are no provided solutions. "Assume that residual returns are uncorrelated across stocks. Stock A has a beta of ...
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2answers
103 views

Cumulative Return between two dates

I have a table that carries data with cumulative return of some instrument. Data is described with start date, end date and cumulative return for date range (start-end): Start Date|End Date ...
2
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3answers
117 views

How do I calculate yield-to-maturity (YTM) with a simple handheld calculator for semiannual payments?

what is the formula for YTM for semiannual payments using handheld calculator ?? how can i able to calculate yield to maturity for semiannual bond payments with handheld calculator
2
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3answers
108 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?
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1answer
66 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 ...
1
vote
1answer
45 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?
4
votes
2answers
89 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 ...
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votes
1answer
43 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 ...
2
votes
7answers
3k views

Help me understand the oddity of percentage gains and losses?

If you start with $100K, and you get a 50% gain, it's $150K. Then, you get a 50% loss: now it's $75K. Reverse the order (i.e. lose 50%, gain 50%), it's the same thing (a 25% loss). So, 50% up then ...
2
votes
2answers
91 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
156 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 ...
2
votes
2answers
161 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 ...
0
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0answers
25 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
1answer
43 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
135 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 ...
3
votes
3answers
1k views

What's the correct formula to calculate my monthly wage (deducting UK Income Tax and National Insurance)?

For a given salary, how do I work out what would be paid into my bank each month? The Income Tax part is explained for the main part in this question, but I can't make sense of the National Insurance ...
2
votes
2answers
43 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
34 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
694 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 ...
1
vote
1answer
61 views

How much in CPP contributions do you pay when you are an independent contractor?

I am trying to figure out how much CPP contributions an IT contractor needs to make as per this CRA guide. It says that for self-employed people, we need to contribute $4959? So, if an independent ...
2
votes
1answer
80 views

Checking the math on a Truth-in-Lending Disclosure

Here is a shot of an actual Truth-in-Lending statement for a real home mortgage (mine). I'm trying to check the numbers but they seem slightly off: It's a 30-year fixed rate mortgage. The annual ...
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 ...
1
vote
2answers
85 views

What would be my tax liability in Zurich, Switzerland?

What would be my tax liability as a single individual, resident of Zurich (not citizen), not a member of any church, with a 90,000 Swiss Franc yearly salary? Let's just take into consideration basic ...
16
votes
2answers
19k views

Daily interest calculation combined with monthly compounding: Why do banks do this, and how-to in Excel?

I often see banks advertise (for accounts with fixed yearly interest, let's say 1.5%) – "interested is calculated daily, and compounded monthly". I have 2 questions: Why are they calculating ...