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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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1answer
15 views

How are net income and yield calculated for margin trading?

You have purchased 150 shares at 10 each. You expect to sell these at 15 each. You only managed to sell 100. Out of your initial purchase price, 400$ were borrowed. Brokerage fee= 2% for the ...
2
votes
2answers
39 views

Simpler way of calculating duration for bonds?

So the question is: Find the duration of a 6% coupon bond making annual coupon payments if it has 3 years until maturity and has a yield to maturity of 6%. What is the duration if the yield to ...
3
votes
2answers
25 views

Does sigma in Black-Scholes attempt to take into account future events?

I am learning basic information about Black-Scholes wrt options pricing. I see that the standard deviation of the stock price is taken into account. This seems to only rely on existing (historical) ...
1
vote
1answer
114 views

Best way to allocate money? Mutual Fund VS Student Loan

I am a 21 year old Canadian who is employed full time. I have no wife or kids nor do I own any property. I have no type of savings set up (investments, CPP, etc.). Each month I have 400$ leftover ...
1
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3answers
443 views

Growing annuity where cash flow grows per second year

I'd like help with a formula for calculating Future Value given the following: An amount is invested at the END of every year, starting with amount of PMT at the end of this year, at an interest rate ...
3
votes
2answers
41 views

How to Calculate a BiWeekly Repayment Loan?

I want to calculate the biweekly repayment loan. I have gotten the monthly using this formula (D) = {[(1 + i) ^n] - 1} / [i(1 + i)^n] Monthly Payment = Loan_Amount / D How can I convert this to ...
-2
votes
2answers
108 views

Is this incremental Saving Formula Correct?

I'm planning to save some money. I earn in Pakistani Rupees. At the time of posting 1Usd = Rs 123.12. I came up with an idea to save a certain amount each month and add additional 10% of the saved ...
0
votes
2answers
239 views

How much can I save if I don't own a car? A worked example comparing car to pension

I don't drive and I've never enjoyed driving. Moreover my eyesight is very poor and I fear I may be a danger on the road. However, some 'friends' and family don't get this, so I want to show a ...
0
votes
1answer
86 views

How should you calculate the average daily return on an investment based on a history of gains?

I started an Acorns account several months ago to use as a glorified savings account. I don't make contributions on purchases, but I contribute 10% of my paycheck to it every two weeks (Richest Man ...
1
vote
2answers
101 views

How do I convert a 4% per annum interest rate, compounded semi-annually, to a monthly rate?

Trying to develop a budget model in Excel. I know a prospective savings account makes 4% per annum, compounded semiannual. I'd like to know how much this means it earns monthly. Does it even earn ...
1
vote
0answers
49 views

Security Analysis (Ben Graham): LIFO question

I'm currently reading/studying Benjamin Graham's work in Security Analysis (1951 edition) on page 112 & 113 he demonstrates the difference between FIFO and LIFO. Table 10 shows the difference ...
9
votes
2answers
303 views

Time, money and probability: Should i sell my electric bike

I bought a second hand electrical bike for a very reasonable price (600 euro) more than a year ago. Since then i changed jobs and i now commute by car and the bike just sits in the shed. If I sell it ...
1
vote
1answer
57 views

Can I calculate an average annualised return from investments held for different lengths of time?

My question is: given a number of investments of differing amounts, held for different lengths of time, how would I calculate an approximate average annualised growth for the entire portfolio over its ...
5
votes
6answers
1k views

Formula for Cost of Potential Home from Monthly Mortgage

I'm trying to find a way to calculate the price of a home I can afford based on my potential downpayment, the monthly rent I can afford, and the interest of a potential loan. I've seen questions like ...
3
votes
1answer
109 views

HELOC Payment Haziness

I have been searching, reading, and watching youtube trying to understand HELOC. Everyone explains simple vs compound interest, daily average balance, and that money can go in and out at any time. ...
3
votes
1answer
120 views

Interest Rates and compounding periods

How can interest be compounded quarterly but with payments made on a monthly basis? Can you give me an example?
2
votes
1answer
95 views

How does Sallie Mae calculate its payment?

Short Version Can anyone figure out how Sallie Mae comes up with its personal loan payment amount? Long Version I have a friend who took out a personal loan with Sallie Mae, and their payment ...
3
votes
1answer
70 views

How can I calculate the annualised growth rate for an irregular investment?

I have a portfolio, which I invest in monthly. Depending on my circumstances, the monthly amount changes from time to time (perhaps every two years or so). I want to calculate the annualised growth ...
1
vote
1answer
80 views

Loan calculation with percentage [closed]

I want to know monthly payment with percentage. Let's say I took loan of $200 and I have to pay monthly for 5 months and amount pay back is $260. Over here $60 is interest. I could make out that I ...
0
votes
2answers
110 views

Am I being underpaid by my employer based on my contract?

I have a full time contract for $43.90 per hour, which was calculated to $91,300 annual salary. I am paid twice a month. We work a 9/80 shift, which means 9 hour days so we can have every other Friday ...
-1
votes
1answer
36 views

Calculate Plus 500 Spread payment

PLEASE ANSWER IF YOU ARE USING PLUS500 as platform so that it is easier to check at platform level. Please ask for more details in case you need before downvoting I am scratching my head around the ...
0
votes
1answer
253 views

Algorithm to calculate the Interest on Loan with a Balloon Payment

I am trying to understand the algorithm used by My Calculators.com - Balloon Payment Calculator If I enter the following details: Loan amount: 4556.75 Number of months: 5 Interest rate: 5.75% ...
4
votes
1answer
190 views

How can I calculate the difference between investing cash in a mutual fund versus using it to install solar?

I am a moderately experienced investor, but I have this one question that I have had a really hard time answering. What would be more profitable: invest in solar electricity, which I have calculated ...
0
votes
1answer
60 views

How do interest calculations differ between loans and savings? [closed]

At the bank or financial institute how are the interest calculation is different from loans and savings? Are they calculated the same way?
1
vote
1answer
149 views

How are CAGR and compounding frequency related?

I am newbie, so forgive me if my question seems trivial. I have a numerical where a bank scheme triples a person's investment in 5 years but it doesn't talk about the compounding frequency. Assuming ...
2
votes
2answers
116 views

How can I amortize 4 rates over a 30 year term?

I've been offered a HELOC modification with the following terms: Beginning balance $148,148.59, Initial rate and term is 1% for 60 months at a pmt of $374.60, The 2nd term begins Jan of yr 6, at 2% ...
2
votes
2answers
172 views

What is the math used to calculate the impact that overpaying a mortgage has an an amortization table?

I'm in the classic 'pay extra on the house vs invest' argument with my partner (not the subject of this question) and I'm trying to understand what exactly happens when I pay extra on a mortgage. I ...
0
votes
2answers
60 views

Determining percentage of property ownership on all cash transaction

I purchased my home in 2006, paying all cash. I owned 100% at this time. My sister wanted to buy into my home and we agreed that she would pay the remodel cost of the portion she wanted to alter so ...
4
votes
2answers
332 views

Including all the ultra-wealthy, what's the average income in the US? [closed]

The ultra-wealthy typically receive fairly little of their income as wages. Larry Page, Sergei Brin, Steve Jobs, Larry Ellison, and Mark Zuckerberg all receive or received no more than $1 per year, ...
-1
votes
1answer
64 views

How to calculate portfolio stock average?

I want to find out how to calculate stock average price. I understand how to calculate average when you are buying stocks, but I'n not exaclty sure how to calculate the average when you sell stocks. ...
1
vote
1answer
62 views

How to calculate APY interest rate from Normal interest rate

In one of the site I saw for 1% interest rate daily compounded interest the APY interest rate is 1.005003 ! How is this calculated I google a lot and didnt find how it is calculated !
1
vote
3answers
58 views

Why do PEG ratio values calculated on different financial web sites differ from each other?

For example when I calculate the PEG of Microsoft (for the fiscal year 2017): For P/E ratio: P/E Ratio = Price per Share (last price before 10-k filing) / EPS (diluted) = 68.93 / 2.71 ...
0
votes
1answer
610 views

How to determine if a bid-ask spread is “good” or “bad”?

Is it possible to weight the bid-ask spread? I'll explain ... In the moment, for a share X, to trade I use the price, volume, $ volume, # trades, % chg and the bid-ask spread (BAS). To make day ...
1
vote
2answers
134 views

What would be my total saving with an increasing and regular yearly deposit after 30 years?

Let's say I deposit $50,000 into the bank and in the first year I put in an installment of 5,000 and the interest is calculated monthly at 7%. In the second year, all is the same except for my yearly ...
4
votes
2answers
375 views

What is the formula for calculating the mortgage constant when payments are made at the beginning of the period?

In this case, the mortgage constant (or loan constant or debt constant) is the (in my case, annual) ratio of constant payments to the original amount, like here: http://www.double-entry-bookkeeping....
3
votes
2answers
121 views

How to compare loans of same principal, same interest but with different tenors

I have a scenario where there are 2 loans that can be provided (assuming I am providing the loan). The principal amount is the same, 30,000 in case of both the loans. The interest is also same at 17%. ...
2
votes
2answers
2k views

Compound daily interest with monthly deposits over x amount of years in excel

This is compound interest calculated daily and topped up with deposits every month e.g Begin with $100, earn 2% interest earned daily even on weekends, and then come month end invest another $100 on ...
2
votes
2answers
129 views

When does a work calendar-month start and end?

This question might sound stupid, but I am unable to find any answer to this. Suppose I am getting paid on 26th Jan, does that mean January started or ended on the 26th? I am building an app that ...
3
votes
2answers
94 views

Daily Interest Monthly Compounding Multiyear

I downloaded the Excel spreadsheet mentioned in the accepted answer to this question: Daily interest calculation combined with monthly compounding: Why do banks do this, and how-to in Excel? It was ...
-2
votes
1answer
87 views

How to calculate the future expenditure of education :

Suppose the following: if a child's age is 2 years today and he/she will go to college at the age of 15 years for 2 years(duration of education) and for which Cost incurred P.A. as on today (Rs.) ...
0
votes
0answers
50 views

Having Trouble Understanding YTW/YTC/callable bonds

I know intuitively that callable bonds have higher yields than a comparable bullet, but I'm having trouble seeing that on excel. For example, in the excel screenshot below, I know that if the ...
4
votes
2answers
362 views

How to calculate return for “negative” investment

I'm tracking a few investments, with a simple formula for total (non-annualised) return, which is (current_value - money_invested) / money_invested. For one of my investments, however, I already ...
3
votes
1answer
126 views

Formula for Calculating Periodic Fixed Payments with Multiple Rate Changes

I'm trying to figure out how to extend the formula provided by Chris Degnen in this previous question What is the formula for the monthly payment on an adjustable rate mortgage? to add in a third ...
1
vote
1answer
119 views

Calculating gain percentage for 24h, 7d, 30d, 3m, and so on

When we see gain percentage numbers like: +7.01% (24h), -0.43% (7d), +31.33% (30d), and so on, how are they usually calculated? For example for the 7d period, is it calculated using: ([average price ...
2
votes
2answers
127 views

How to calculate worth of money N year ago from given inflation value

I want to calculate worth of money N years ago. Based on this post, it can be calculated using CPI, but I want to use given inflation value N years ago. It better if I can get reference(s) of formula ...
1
vote
2answers
72 views

How to pick from several products/services to maximize utility considering the cost of each option?

What is the proper way to consider the utility of a product/service versus its cost in order to make the best rational decision to get the "most for my dollar" if there are several choices for me to ...
2
votes
0answers
45 views

Implied appreciation of a currency

I have a very specific question in regards to a forward calculation. The USDEUR spot rate today is 0.759503. Libor and Euribor forward rates for the NeXT year are as follows: Fwd 3m Libor 0.00288 0....
13
votes
5answers
3k views

How to calculate car insurance quote

I'm trying something in related to Auto Insurance and when I went through the State Farm's insurance portal, it asked me for a couple of questions like below. Vehicle ownership Car Age Person's Age ...
0
votes
1answer
141 views

How to read WSJ US Treasury quotes

I am trying to understand how they calculated "asked yield". If anyone can explain it, I really appreciate it. I would like to see the mathematical formula and the calculation.
0
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2answers
57 views

How to model fees from trades on online platforms?

So stock exchanges like super trade or options express have thresholds for the way they price trades on their platform. So for instance, say for less than 100 trades it costs $17 per trade, and then ...