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Questions tagged [calculation]

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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2answers
54 views

How do you calculate the rate in the present value of an annuity due calculation?

I have the formula for calculating the present value of an annuity due I have the Present value now, so I want to solve for r. In other words, I would like to find out the resultant rate. In the ...
2
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2answers
353 views

What is the formula for loan payoff date?

My goal is to calculate loan payoff date. Actually I'm making a wordpress plugin to calculate that. I made a form from I can have following inputs from user. Current Loan Information Original ...
4
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2answers
1k views

How do I calculate my net worth according to the book “The Millionaire Next Door”?

I remember reading about PAWs, UAWs, and AAWs. I also remember that the formula for what your net worth should be on average (to be an AAW) is your income (without inheritance[s]) multiplied by one ...
0
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1answer
82 views

USD stock investment with EUR base currency

I can't wrap my head around this: In late 2011 I used EUR to purchase stock valued in USD. Dividend yield aside, the stock advanced a lot. However, EUR/USD also changed quite a bit. I am ...
1
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1answer
354 views

CAGR and Dividend Yield

I am brand new to this, but am looking for some guidance when it comes to calculating the estimated FV of an investment in stocks with dividends reinvested in the same company. I'm going to be really ...
2
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3answers
4k 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 ...
4
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3answers
2k views

Calculate time to reach investment goals given starting balance?

I'm sure this has already been asked, but I've had difficulty finding the answer by searching. Most investment formulas I've found explained don't include a starting balance. Given payment size, ...
3
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2answers
436 views

Stochastic Oscillator for Financial Analysis

I have been using the stochastic oscillator indicator to get some insight on particular stocks. Below is an example of a 14-day lookup period for K where D is a calculated as a 3-day average of K. ...
2
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4answers
674 views

Why does ExxonMobil's balance sheet show more liabilities than assets?

In analyzing balance sheet of ExxonMobile, based off of Yahoo Finance report, we run into the following figures for the year: Current Assets: 51,647,000 Total Liabilities: 175,592,000 Now Current ...
4
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2answers
433 views

How do I calculate the benefit of contributing to 401K vs paying off consumer debt?

I have a ~$15,000 loan with a 6% interest rate. My company matches half of my 401K contributions up to 6%, and I am in a 25% tax bracket. I currently contribute 15% of my income to my 401K. How do ...
2
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2answers
810 views

Calculating average interest rate with intermittent deposits

I invest in a few medium to low risk accounts online (peer to peer loans and buy to let property crowdfunding). I make regular deposits into these accounts, usually when the monthly salary comes in, ...
2
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1answer
652 views

Am I doing the math for this long straddle strategy correctly?

I'm looking at making a long straddle trade, and I'm trying to make sure I have the math correct before making the trade. Here are the details in the example I want to work out: I'm using options on ...
6
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2answers
1k views

Am I doing the math for this covered call/long put strategy correctly? What risks do I run with this strategy?

In this trade, I write an in-the-money covered call and buy an in-the-money put (as an example) on GM, expiring in September 2014. The call premium is $10.02 with a strike of $26, and the put premium ...
3
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2answers
245 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 1.15,...
2
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2answers
89 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
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2answers
95 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) ...
3
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1answer
545 views

Calculating fair value of an oanda.com box option

How do I calculate the theoretical "fair value" of an oanda.com box option? More specifically, how do I calculate the probability that a given FOREX parity will enter a given range in a given period ...
1
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6answers
3k views

How can I calculate total return of stock with partial sale?

I have searched the internet for hours and still can't find the formula to calculate the Total Return in percentage with the below scenario. Bought 310 shares at $3.15 brokerage $19.95 Sold 200 ...
1
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1answer
138 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
656 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 ...
4
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1answer
240 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
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2answers
184 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 ...
3
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2answers
243 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
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2answers
283 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
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2answers
256 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
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1answer
1k 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
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2answers
2k 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
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0answers
62 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
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2answers
317 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
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2answers
12k views

Choosing between two car deals on the same car - NPV

This is basic question, but I have starred myself blind on it - I am stuck. I am not sure which formulae I should use. Here is the story. I am looking to buy a car. I have found two dealerships ...
1
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1answer
95 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 ...
1
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1answer
500 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 ...
3
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1answer
131 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?
5
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6answers
2k 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
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1answer
130 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. ...
2
votes
1answer
173 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
193 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 ...
3
votes
1answer
129 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
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1answer
108 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
127 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
64 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 ...
1
vote
1answer
157 views

Steps to calculate reduction in spending vs. savings till retirement

I'm stuck and I I think it's an algebra issue. I have a typical what do I need to save (today) so I can retire question for the first part. Let's say you need $1,239,926.43 in savings at retirement (...
2
votes
1answer
1k views

Formula to compute 10 year US governement bond price given yield

What is the formula to convert US govy 10 year yields (as those shown here) in to bond prices? I know in general the math looks like this but I don't know what the values of the variables are for a ...
17
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2answers
17k 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 ...
4
votes
1answer
212 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
73 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
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1answer
287 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
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2answers
140 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
389 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 ...
-1
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1answer
132 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. ...