a generic tag for question on rate of interest applicable. Ideally should be accompanied by geography tag and other specific subject tags

learn more… | top users | synonyms

2
votes
1answer
27 views

Calculating total number of monthly payments in Excel using NPER and PMT?

How to calculate the total number of monthly payments given the amount of loan ($275,000), the annual interest rate (4.35%) and the number of years (30)? I'm confused because I'm trying to use the ...
0
votes
1answer
45 views

Making sense of mutual fund returns

Looking at a mutual funds returns, sometimes I see a 5 year return of 20% and 1 year return of 100% (both annualized). Does that imply that the growth was 0 in the year n-5 to n-1, and the growth of ...
0
votes
1answer
7 views

Public source for SWAP rates

I am trying to find a publicly accessible source for EUR, GBP and USD swap rates. Ideally it would have to include 5 years, 7 years and 10 years maturities. Does anybody around have a reliable and ...
0
votes
2answers
61 views

Does it make sense to invest in bonds when interest rates are likely to rise? [closed]

Thinking about a possible increase in interest rates in the future, does it make sense to invest in bonds? Would the price of a bond fund holding mostly AAA rated Fannie/Freddie issues, and medium ...
1
vote
4answers
134 views

How to calculate Annual Percentage Rate of a loan with unequal periodic payments?

Let's say we borrow a loan of $1000. We pay back to bank $100 per month but for some stupid reason the last payment is smaller and equals $50. This is a common case in my country. How then the APR ...
0
votes
1answer
14 views

Incorrect XIRR value of installment loan?

Using a financial calculator I was able to determine the interest rate of an installment loan with principal of 14975, payments of 444.56 and 60 month term is .2557%. However, when I put the loan ...
0
votes
1answer
20 views

How do I know what is the current market interest rate for bonds?

It's said in books and articles that when the "interest rate" rises, the price of bonds becomes lesser, and vice versa. Intuitively, this is reasonable since bonds with higher interest rates are ...
2
votes
2answers
56 views

How do banks calculate interst on savings account

Sometimes, I see banks advertise rates on savings accounts like this: Interest is calculated daily and compounded semi annually. Now if it is compounded semi annually , how can it be calculated daily? ...
1
vote
1answer
65 views

Why are U.S. Treasury interest rates are so low vs. other nearly risk-free rates?

I was reading Options,Futures and Other Derivatives by John Hull and I came across the question: Why are US Treasury rates significantly lower than other rates that are close to risk-free? I ...
2
votes
1answer
57 views

Lend money at a rate linked to the prime rate

Are there any fixed income investments for retail investors that offer a rate that is fixed to the prime rate (like : prime - 1%). Usually it is easy to borrow money at rates that are linked to ...
1
vote
0answers
46 views

Can I choose to refinance only some of my loans even if they are from the same lender?

I am looking for guidance on what to do about paying back my student loans. Unfortunately I work in the Human Services field and have not been able to afford to make significant payments on my loans ...
-4
votes
1answer
36 views

How decreasing the prime interest rate helps to offset decreasing oil prices [closed]

Bank of Canada said that it is reducing prime rate to offset the effect of decreasing oil prices. I could not follow how decreasing the prime rate will help counter the effect of decreasing oil ...
0
votes
0answers
54 views

Make money based on interest rate cut in Canada

Bank of Canada recently announced reduction in its prime rate. As a Canadian, is there a way to take advantage of it? For example, if I bet that in the next 12 months, the rate would increase, how can ...
1
vote
0answers
87 views

Effects of interest rate changes on long term bond funds

I realize this question has been asked a bunch of different ways over the years, but I was hoping to get specific opinions on how a Fed interest rate increases will effect long term bond ETFs (i.e.- ...
1
vote
1answer
100 views

Private student loan balance not moving

I need help trying to figure out how to pay down my private student loan. The balance is almost $20,000. Sadly at the time that I took the loan, the interest rate was 8.75% (I think it was actually ...
9
votes
3answers
823 views

Why deposit interest rate in the same currency is different from country to country? [duplicate]

My bank offers 11% interest rate for 1-year deposit in USD. This is similar to what other Ukrainian banks offer, but much higher in comparison with our neighbourhood countries, Belarus (3.5%) and ...
1
vote
1answer
93 views

Why would my mortgage payment change if the interest rate stayed the same?

I just received a letter from my bank , stating that my yearly rollover interest rate would not be changing. As of now we pay $353.72 on the principal and 61.63 on the interest. This loan is almost 18 ...
15
votes
1answer
2k views

Did Greece really issue bonds to investors yielding 42% interest?

I read this in the news regarding Greece's financial crisis: The country’s 10-year bond yield fell 11 basis points to 8.04 percent at 12:26 p.m. in Athens today. While that’s down from a record ...
2
votes
1answer
54 views

How do margins on tracker mortgages (variable rate mortages) vary over time?

One kind of mortgage, in the UK at least, is a tracker: the interest rate is equal to the central bank's base rate of interest, plus a constant margin. The margin can apply for the lifetime of the ...
5
votes
5answers
372 views

23 and on my own, what should I be doing?

So I graduated in May with a Computer Engineering degree and started work in September at a major bank located in Jersey City and moved in with a couple of college friends in an apartment in Astoria, ...
0
votes
0answers
48 views

Credit reports that show interest rates?

Are there any credit reports out there that report the interest rates and/or interest charged for each of one's accounts? The most useful aspect of the Experian report from FreeCreditReport.com is ...
0
votes
0answers
52 views

How to find implicit rental rate?

I come across this question in my economics textbook, however I have no idea how to compute the implicit rental rate. Marc bought a new car last year for $10,000. He can now sell the car for ...
0
votes
0answers
37 views

Formal Definition of APR

I have seen several conflicting sources on the internet about APR. Some say the effective rate is (1+APR/n)^n -1 while others say this formula is the APR since APR represents the rate over all ...
2
votes
2answers
72 views

Difference in Interest Calculations Using Loan Calculator

Suppose that I have a loan value x and interest rate r. The simple interest is then x*(1+r). If I take out a loan compounded annually and paid monthly for 12 months the amount at the end of the year ...
-1
votes
1answer
32 views

APR for a Loan Paid Off in Monthly Payments for 9 Months [duplicate]

Say a loan is issued for 9 months with $1000 principal and with a payment plan consisting of about $162.23 each month. Does this loan have an APR of 46%?
2
votes
2answers
117 views

APR for a Loan Paid Off Monthly

A loan is issued for 12 months for 1000 and is paid back with monthly payments of $140 each month. Does this loan have an APR of 68%?
0
votes
2answers
133 views

What are ways to increase my income after taxes?

I live in MA, USA. I recently got a job and feel like almost half of what I earn is going to taxes, and putting money in bank doesn't give enough interest. So what options do I have (like invest in ...
0
votes
1answer
35 views

Lending Club - Interest rate and interest received compared with total payments discrepancy?

I have a Loaner's Lending Club account. There seems to be a discrepancy between some of the numbers on my account (the discrepancy would be in my favor, I just want to know why they are the way they ...
-1
votes
2answers
119 views

What happens to bonds values when interest rates rise? [duplicate]

I want to invest 10% of my portfolio into bonds. The other 90% will go into stock. I took a look at Government Bonds which TD Ameritrade offers at a $5000.00 minimum. This is a little over my ...
1
vote
2answers
49 views

Please help me understand reasons for differences in Government Bond Yields

First off, I'm completely new to all of this, so please go easy on me. According to http://markets.ft.com/research/Markets/Bonds I notice that the yields on the following government bonds are as ...
0
votes
1answer
118 views

What would current US interest rates be if left to the free market? [closed]

Suppose that the Federal Reserve did not conduct any open market operations and allowed interest rates to freely float, while the treasury continued borrowing to fund the budget deficit. What would ...
-2
votes
1answer
72 views

How much will I be saving off of interests if I fully pay my mortgage earlier?

I purchased a vacant lot and opted to pay for it in installment for 60 months at an annual fixed rate. This formula was used to calculate my monthly fee: M = P[i(1+i)^n / ((1+i)^n-1)] I am currently ...
1
vote
1answer
80 views

Loan with Compensating Balance

Trying to calculate effective interest rate on loan with the following terms: 128 day term loan 5.4% interest rate 12% compensating balance required Stuck by idea of compensating balance and how ...
-1
votes
1answer
259 views

Urgent advice on used car purchase nightmare

I purchased a used vehicle almost 2 years ago and it was breaking down so i decided to turn it in. I was pre-approved through my credit union for $20,000 at 100%. My current loan is upside down by ...
2
votes
4answers
166 views

Buying Fixed Deposit in India from Europe

Given the chance, does it pay off to open a FD in India (high interest rates, high inflation) with Euros (low interest rates, low inflation) from Europe? Or is it too risky on the long run (~ 1 ...
1
vote
2answers
323 views

What does an interest rate “calculated daily and paid monthly” on my bank account exactly mean?

I have a CIBC premium growth account that offers a "0.20% interest rate on every dollar you save calculated daily and paid monthly". I'm just curious as to what the 20% Premium Growth interest rate ...
-2
votes
1answer
44 views

calculate return on investment [closed]

I am interested in calculating returns from a fixed no of periodic investments that is redeemed at a specific time after the last payment. ex : periodic outflow of 3000 on a monthly basis for 8 ...
1
vote
2answers
440 views

Too low interest rate in New Zealand

I came from a country with high interest rates where you can easily find an investment that pays more than inflation, but I moved to New Zealand and was surprised when I saw that the inflation rate is ...
8
votes
4answers
913 views

Should I get cash from credit card at 0% for 8 months and put it on loans?

I have approx $100K in student loans, and am still in my grace period. I am able to get approx $4K cash from my citibank card as a special promotion. I would not have interest on the card until April ...
0
votes
0answers
36 views

Adjustable rate loans based on LIBOR spreads

I'm trying to create an operating model for a company based on a macabacus.com template. I'm working on the debt schedule and need help understanding LIBOR rates. If you scroll to line 248 in the ...
0
votes
3answers
171 views

Is 6% too high to trade stocks on margin?

Lets assume I understand the risk of trading on margin and that I can lose the money. My question is if 6% is too high? I do have dividend paying stocks that could almost cover the monthly interest ...
2
votes
2answers
129 views

Systematic investment plan interest calculation

How can I calculate the effective compound annual growth rate (http://en.wikipedia.org/wiki/Compound_annual_growth_rate) for a systematic investment plan ...
0
votes
1answer
174 views

Where to buy good corporate/goverment/treasury bonds?

I am non american citizen. I read a portion of Benjamin Grahams, "The Intelligent Investor" he suggests that one should always have a portion of ones savings in bonds. Specifically, he mentions SERIES ...
0
votes
2answers
273 views

Why is a home loan (mortgage) cheaper than gold loan?

I am not sure if this is a India specific issue. I understand that gold is a basically non-value add asset and real estate business generates jobs and people do need houses to live in. My doubt is ...
-1
votes
1answer
100 views

Calculate Finance Rate, Interest Amount when we have below line Fees

Since i am not from Finance and Software Developer i find it difficult to create formulaes I have these inputs: Principal Sum: Interest Rate: Below Line Fee: Number of Payments: True Rate or ...
5
votes
1answer
146 views

Why does it matter if a Central Bank has a negative rather than 0% interest rate? [closed]

I saw in the news today that the European Central Bank lowered its interest rate below zero. My understanding is that this rate is what banks are paid (or if negative, "charged") by the central bank ...
1
vote
1answer
79 views

Buying a House and Taking Part of 20% to move initial payment date forward

From what I have come to understand 20% is the amount you ideally pay down on a house primarily because personal mortgage insurance isn't required. One risk I would like to hedge if I buy a house is ...
2
votes
1answer
233 views

Taking out a private loan to pay off student loans

My wife and I have a large sum of student loans (>150k together). She is now out of school and I'm in the latter years of a PhD program. So we both have steady incomes. My loans are from the ...
2
votes
4answers
413 views

Relation between inflation rates and interest rates

In Canada, as of the time of writing this question, the: Key interest rate is 1.00% (source) The inflation rate is 1.50% (source) In India, at the time of writing, the: Base interest rate is ...
8
votes
2answers
534 views

Mongolian bank offering a high interest rate. What's the catch?

A bank called Khan Bank in Mongolia is offering to keep my savings at 15.10% interest rate, account denominated in Mongolian Tughriks. They give an example "if you saved 100.000 MNT on 2013/11/12 you ...