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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5
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3answers
6k 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?
5
votes
3answers
774 views

Is there a dollar amount that, when adding Massachusetts Sales Tax, precisely equals $200?

I am confused about calculating Massachusetts Sales Tax (6.25%). Is there such an amount, that when added to its sales tax, equals $200? The reason I ask is because my business has been charging $...
3
votes
1answer
176 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 ...
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 ...
5
votes
2answers
2k views

How can I calculate a “running” return using XIRR in a spreadsheet?

I should say that I'm not married to XIRR, I just want to calculate the return on a running basis in a column next to dates, deposits and balances. Here's a screenshot of a simplified spreadsheet in ...
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 ...
2
votes
3answers
113 views

Loan repayment calculation and monthly compounding interest problem

I need to write a mock up application that returns a quote to potential borrowers. The specification says that "The monthly and total repayment should use monthly compounding interest". Program ...
2
votes
2answers
118 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 ...
3
votes
1answer
77 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 ...
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, ...
1
vote
1answer
2k views

What's the beta of U.S. treasury bills?

Is it zero? My reference equation is: Bi = σim / σm2 Is the top sigma of im considered to be zero, since treasury bills have a fixed payout? If not, how do you suggest ...
3
votes
2answers
18k views

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

Is there a way to calculate yield-to-maturity (YTM) using just the payments (not all equal) with just a simple handheld calculator and without using Excel?
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
50 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
239 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 ...
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?
-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 ...
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? ...
9
votes
5answers
6k views

Do I owe taxes if my deductions are higher than my income?

My total income this year was $16,604 (wages, interest, and business income). My deductions (including IRA, personal exemption, standard deduction, and self employment tax) was $17,404. TurboTax ...
1
vote
1answer
120 views

Calculating EPS

I have started teaching myself basic business stuff and have a question regarding calculating earnings per share. Q: [bunch of numbers for revenue, expenses...] At the beginning of year: 80,000 ...
0
votes
1answer
741 views

Calculate EPS yourself

According to finance.yahoo.com, PriceSmart Inc. (PSMT) has an EPS of 2.1 as of May 14, 2012 close. Where exactly do they get the earnings from? I thought I understood the EPS, but when I tried ...
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 ...
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?
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 ...
4
votes
1answer
859 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 ...
2
votes
1answer
308 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 ...
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."
0
votes
1answer
94 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 ...
-1
votes
1answer
534 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 ...
-2
votes
1answer
120 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
votes
1answer
490 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.
4
votes
1answer
59 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: ...
0
votes
3answers
157 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?
1
vote
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
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 ...