for questions that relate to interest. Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets.

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2answers
51 views

Balancing an Interest Accrual Rate Between multiple loans

Tags: multiple student loans , balancing interest accruals , student loan help
2
votes
1answer
74 views

What is the true cost of a loan counting inflation and interest? [closed]

What's the equation for determining how much, in present/initial dollars, I would spend on a loan given that the loan is P dollars, the interest is r percent, inflation is i percent, and interest is ...
3
votes
3answers
97 views

Given a certain yearly savings, how much can I spend on a capital improvement? NPV of future cash flow

I'm seeking a simple online calculator, or explicit instructions for a spreadsheet, for answering simple real-world scenarios like this: Our insurance company is offering a 30% discount on an ...
3
votes
2answers
328 views

Monthly/Annual Payments Calculation with percentage increase to equal exact dollar amount over exact specified period

I'm not sure if this is the right place to ask this kind of a question, but here it goes. I have the following information: A = Total amount needed B = Number of periods (monthly, 12 payments of ...
3
votes
1answer
111 views

Is it to my advantage to refinance with an LPMI option (Lender-Paid Mortgage Insurance)?

My fiance and I bought a house in April 2013 using a FHA loan, 30-year fixed. We only had to put down 3.5% so of course a good bit of our monthly payment is PMI. I got a call today from the same ...
0
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0answers
67 views

Are loans that charge a fixed interest amount based on original principal throughout the loan still used? If so Where?

Some loans charged interest on the total amount of the loan (at origination!) until the last payment is made--effectively doubling the interest charge on a loan which charges interest on the declining ...
3
votes
1answer
582 views

How is “Balance Subject To Interest Rate” calculated?

I was approved for a balance transfer of $2,500 to a card, and that month my statement looked like this: INTEREST CHARGES (APR 2013) ...
-2
votes
2answers
227 views

Why are mortgage interest and taxes considered tax deductible?

I have trouble understanding the rationale behind why certain things are tax deductible while other things are not. For example, I understand that RRSP contributions are tax deductible because I am ...
8
votes
1answer
159 views

Is my financial plan for buying a house logically sound

All money is in NZD, all calculations done Weekly. Linked house is just example. House in North Shore, Auckland, New Zealand. $600K 30 year Mortgage with ASB, 430K loaned at 5.75% variable, (170K ...
4
votes
3answers
1k views

Why have U.S. bank interest rates been so low for the past few years?

I have some savings accounts in different banks and they all give 1.00% interest or less, and in many cases it is something ridiculous like $0.05 Would anyone be able to explain why this is ...
1
vote
1answer
293 views

How to calculate the proportion interest/principal of this fortnightly (bi-weekly) loan payment?

You would need to borrow $660,000 and your fortnightly payments would be: Reducing loan $2,299.61 given 5.75 variable interest rate How much of the $2300 fortnightly paid is interest, and how ...
0
votes
1answer
176 views

Help with calculation of interest on a security deposit on a rented house?

I know you answered a similar question on another post but I am in dire need of help. I was wondering if you could help me out with my security deposit calculations? We paid $1795 for our deposit in ...
0
votes
2answers
115 views

For most loans, do you pay interest on the principal or amount remaining?

For example, if I take out a personal loan from the bank for 1k for 1 year with 10% interest, I would pay $100 in interest. What would happen if I paid back $900 on the first day of the loan, and then ...
1
vote
1answer
5k views

India Income Tax: Need to Pay Tax on Savings Account Interest for FY 2012-13 Or Not?

As per Indian Income Tax rules and regulations, for the Savings Account Interest accrued during the period of April 2012 to March 2013, do I need to pay any tax if it is less than Rs.10000? Or is it ...
5
votes
2answers
118 views

Does there exist a kind of loan where no part of principal is paid, while interest is still paid?

I know that when debt is being re-paid, one pays interests along with repayment of some parts of debt principal. However, I am wondering a case where no part of debt principal is re-paid while ...
6
votes
3answers
135 views

Loan-with-PMI vs other loan: which is best to pay down

I would like to understand whether it is better to make extra payments on a home loan that includes PMI (Private Mortgage Insurance) or a different (high interest) loan. Typically, when deciding ...
1
vote
2answers
103 views

Forex, trading “currencies” or trading “relations”?

I'm newbie in Forex and have a simple question, I guess. Disregarding leverage and things alike, I would like to know what's the difference between opening a position in Forex on a pair through a ...
6
votes
1answer
192 views

Any Canadian tax shelter for lending to friends or family?

I am considering helping friends or family out of credit card debt, which is costing them ~18% per year by giving them a loan at more like ~3% (kind of like consolidated credit/debt). Is there ...
9
votes
5answers
310 views

Paying Off Debt: When CC Companies Won't Reduce APR

For the past two years I've been living, for the first time, under the weighty, grey cloud of credit card debt. Foolish use of personal credit cards to fund asset purchases for an LLC have resulted in ...
12
votes
7answers
7k views

Why do banks want you to pay off interest before principal?

When you take out a traditional mortgage the first payment you make to a bank pays off mostly interest and then later payments start paying off principal. What is the reason for this? Is it just a ...
1
vote
3answers
2k views

Why does the principal/interest applied to my balance fluctuate in spite of making payments on-time?

In my first payment on 6/03/2011, the principal applied to my balance was $261.11 and the interest was $221.64. As I kept making the payment on-time, the principal applied to my balance kept ...
4
votes
1answer
43 views

U.S. Bonds Taxed Interest and Current Value

Series EE Bond just matured and I cashed it in. The current value that I received in cash was only a little more than the original face value. However, the interest I am paying taxes on is half the ...
5
votes
2answers
266 views

Interest on security deposits paid to landlords, in Michigan?

Does the state of Michigan require landlords to put security deposits in interest bearing financial institutions?
2
votes
1answer
147 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. ...
2
votes
2answers
463 views

Can the interest on a cash out refinance for a rental property be claimed as an expense?

I currently have my home all paid off. I am thinking about purchasing another property as my primary home, and renting out my paid off current home. My question is should I: Get a regular loan for ...
2
votes
1answer
98 views

How to figure out interest received from 'cash and cash equivalents' in a balance sheet?

Looking at APPL's balance sheet, I can see that they have a few million as cash and cash equivalents. I want to know more about cash and cash equivalents. I understand that cash and cash ...
-1
votes
2answers
109 views

Please explain short interest; specifically, why is it called “interest”?

I understand that short interest is the number of shares that is currently short sold. A high short interest indicates that the share price is expected to fall. All good, but what is the word ...
2
votes
2answers
442 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 ...
1
vote
1answer
158 views

How can Mastercard's interest rate be more in Norway than in Finland?

I select Mastercard because it is easy to compare credits cards between the following countries. I am looking the prices of Mastercard in Finland, Estonia and Norway. All banks have the same amount ...
2
votes
3answers
149 views

Interest rate question

I'm having a little trouble figuring this out. Suppose I took out a loan with the following terms: Loan Amount: 1,000 Interest Rate (APR): 10% Compound Frequency: Monthly (12 compounding periods) ...
2
votes
1answer
198 views

Why doesn't the government pay interest on tax withholding returned via a refund?

When the US government pays you your tax refund, it doesn't include any sort of interest payment for what is essentially a loan to the government. Why doesn't the government pay interest?
0
votes
1answer
66 views

Which state do saving interests come from?

Suppose you have a banking account opened in state X and you live in state Y. If you earn interests with the account opened in state X, can that be considered income from state X, or should it be ...
3
votes
1answer
307 views

How do interest rates work?

My question is very simple. I am considering a CD for my money, but I don't know a whole lot of the financial math that goes into that kind of stuff. My question is about interests rates. Do CD's ...
2
votes
3answers
373 views

Quick formula for calculating total interest in my head

Is there a rough, quick and dirty, formula that I can do in my head for calculating the total interest on a loan? Something like: TotalInterest = Principal * (Yearly Interest% * Term In Years / 2); ...
1
vote
2answers
1k views

Retirement formula for annual compound interest with changing principal

I'm trying to calculate how much money I'd have to put away each month for the next 20 years, to be able to withdraw 50,000 a year for 20 years after that (a retirement calculation). The issue that's ...
3
votes
2answers
2k views

Can I negotiate to have a credit card interest fee waived?

I recently missed a credit card payment by one day (my first one ever in my history of credit starting from over 10 years ago), and I called the credit card company to have the late fee waived. I ...
7
votes
2answers
566 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 ...
2
votes
2answers
149 views

Mortgage and/or unit trust

I will be purchasing a property soon, so my question is the following: Do I pay off my mortgage off as soon as possible (by paying more every month) or do I put the same amount extra into some unit ...
5
votes
2answers
278 views

Why is mortgage interest deductible in the USA for a house you live in?

In Australia, if you have a mortgage on the house you live in the interest and other expenses are not tax deductible, unless you rent out one or some of the rooms or run a business from your home, in ...
4
votes
1answer
294 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
1answer
177 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, ...
3
votes
1answer
3k 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 ...
6
votes
3answers
925 views

How to pay more principal on home loan?

This is how I pay off my current loan for my condo. Principal and interest - $1,867.27 Escrow payment - $776.63 Total monthly payment - $2,643.90 When I go and look at the transaction detail. This ...
-1
votes
1answer
176 views

How to read interest/principal payoff table

I have this data (modified dates) in my transaction history: (APR=.99%) I have made 4 payments till date. 4th Paid on: 06/25/2001 $1000.00 Principal $1000.00 //Paid ...
2
votes
2answers
890 views

How much interest will I pay on my credit card?

I'm about to move to the US and I'm wondering: say I always keep an active balance and never overdraw/accumulate debt, will I still pay interest on my monthly expenses paid via credit card? For ...
0
votes
2answers
119 views

How can I calculate interest portion of income when selling a stock?

For religious reasons, I want to account the income from interest separately from any other income. I know that most companies today have some liquid assets, which accrue interest. But when I sell a ...
2
votes
1answer
131 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 ...
7
votes
3answers
801 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 ...
5
votes
4answers
3k views

Difference between dividend and interest

A representative at my federal credit union used dividend and interest exchangeably in our communication, claiming the two were the same concept in their financial institution, which doesn't sell ...
2
votes
3answers
1k views

How is interest in my bank account calculated?

I am a software professional. I have one question. How do banks calculate interest on money deposited, if I get, say, 10 % per annum? Say I deposit say RS.1000 on the 1st day of the month; then I ...