The Stack Overflow podcast is back! Listen to an interview with our new CEO.

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.

Filter by
Sorted by
Tagged with
0
votes
1answer
843 views

Calculating Interest Accrued for a late payment

I'm trying to calculate the interest accrued on my amortization schedule manually. I can calculate it fine if payments are exactly one month apart but this payment is More than 1 month apart. This ...
1
vote
3answers
249 views

How to compare the value of a Masters to the cost?

I've recently been accepted to a masters program through a not-for-profit that partners with a university. I'm attempting to measure the value of the cost against my expected increase in earnings (and ...
12
votes
5answers
5k views

Paying extra on a mortgage. How much can I save? [duplicate]

Can I pay $12,000 extra once a year or $1000 every month - which option is better? The first option does sound better, but for a 30 year mortgage, is it that significant? The mortgage is for $527,...
3
votes
1answer
2k views

Is portfolio beta truly just the weighted average of stock betas? If so, is there a way to distinguish betas based on composition?

For instance, assume you have three portfolios. Portfolio A is 100% invested in a market index with β=1. Portfolio B is a 50/50 mix of two stocks (Stock A β=1.5 and Stock B β=0.5). The weighted ...
0
votes
2answers
804 views

What are “trailing 12-month total returns”?

In a blog post about momentum strategy, I have read the sentence At the end of each month, compare the trailing 12-month total returns of U.S. and foreign stock markets. What exactly are "...
2
votes
0answers
116 views

Why does this retirement calculator calculate ROI on only half of my savings?

I plugged some example numbers into the early retirement calculator at Networthify: a $50,000 annual income, $15,000 of annual expenses, and a starting net worth of $100,000. I’m confused about one ...
0
votes
1answer
109 views

Unrealized Profit & Loss for Non-Stock Securities

I have several records of various transaction types (buy, long, short, cover...) on various asset types (stocks, bonds, options, futures...). I am looking for a way to calculate the unrealized P&...
25
votes
4answers
41k views

Daily interest calculation combined with monthly compounding: Why do banks do this, and how-to in Excel?

I often see banks advertise (for accounts with fixed yearly interest, let's say 1.5%) – "interested is calculated daily, and compounded monthly". I have 2 questions: Why are they calculating ...
4
votes
1answer
2k 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 ...
0
votes
1answer
29 views

TI BA 2+ Annuity Calculation

What is the present value (or purchase price) of an annuity product which will pay you $2,500 at the end of each year for the next 14 years? Use a discount rate of 9.75%. My calculator (TI BA 2+) is ...
2
votes
3answers
725 views

Calculate investment's interest rate to break-even insurance cost [duplicate]

Let's say I want to buy a house that costs X, and that I have 20% of X to put as a down payment. But I could put only 5% of X down and I would have to pay a 3.26% insurance premium on the mortgage ...
1
vote
1answer
282 views

Why is “1” subtracted in the formula for nominal risk-free rate?

Nominal risk-free rate = (1 + risk-free rate) x (1 + rate of inflation) - 1 Why is one being subtracted at the end?
2
votes
2answers
665 views

Calculate the Loan Amount for a given Monthly Payment where the Balloon Payment is a Percentage of the Loan Amount

I'm trying to calculate how much you can borrow for a given monthly payment, including a balloon payment, where the balloon payment is given as a percentage of the final loan amount. The calculation ...
3
votes
2answers
5k views

calculating investment principal after monthly withdrawals

I am trying to find a formula for calculating the annual or quarterly principle remaining in a compounded interest investment account with no additional investments but with monthly withdrawals. ...
1
vote
1answer
101 views

Determining the interest rate necessary to retain a certain balance after sixty monthly withdrawals [closed]

I have seen many examples online for "Time Value Money" and "sinking funds". I want to know how I can combine any type of solver in the PMT-PV equation? Because all these examples have known FV, PV, ...
3
votes
2answers
153 views

How do these inflation figures make sense?

In trying to find annual inflation for the UK, I came across this page: http://www.rateinflation.com/inflation-rate/uk-historical-inflation-rate I don't see how the annual inflation rate to the ...
2
votes
2answers
291 views

Allowed roommate to make a purchase on my credit card. How do I calculate her interest?

On Nov 5th my roommate had a medical emergency for her cat. The bill totaled $1097.46. I was with her, and we put the bill on my credit card with the understanding she would pay it back, including any ...
1
vote
3answers
134 views

What is the correct way to calculate the total amount that mutual fund fees will cost me over a certain time period?

The 3 methods below all have different results, and I'm not sure which is correct. Principle = $1M Return: 7% Fee: 1% Time period: 3 years Method 1: ($1000000 * 1.07^3) - ($1000000 * 1.06^3) = $...
1
vote
1answer
82 views

How do I calculate the long term Brokerage service cost for my dollar cost averaged investments?

I'm currently in the middle of comparing brokerage firms cost-wise. One brokerage firm charges its service fee based on an annual rate that is charged monthly. Since I want to employ dollar cost ...
2
votes
1answer
12k views

How to determine the final value of a U.S. Savings Bond at maturity?

Is it possible to determine the "final" value of a U.S. Savings Bond on its maturity date? The interest rate is fixed, the compounding periods are known (semi-annually for EE bonds), and the term is ...
3
votes
2answers
675 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 ...
18
votes
3answers
38k views

If I were to buy something a day before my due date for my credit card bill, would I be charged interest?

First of all, I am a resident of Canada. I am new to credit cards, so I hope my question makes sense. I've had my card for a few months ago and I've always paid the balance in full by the time the ...
2
votes
2answers
253 views

Car finance, APR rates and per week in adverts; help understanding them

Looking at a car advert [for a car I was considering buying in April 2008] but in the end I didn't - this was what the advert stated: 2005 TOYOTA COROLLA 1.4 VVTi 5 door hatchback £7195 From £38 ...
2
votes
8answers
10k views

Help me understand the oddity of percentage gains and losses?

If you start with $100K, and you get a 50% gain, it's $150K. Then, you get a 50% loss: now it's $75K. Reverse the order (i.e. lose 50%, gain 50%), it's the same thing (a 25% loss). So, 50% up then ...
2
votes
5answers
3k views

Calculating interest for a loan made for a friend on a credit card

I have a credit card with a 16.5% APR. I had $2500 on the card already. I made a purchase for a friend of $3700, who has just paid me back after 11 months. How can I calculate the interest he would ...
1
vote
2answers
6k views

Google Finance: Input Parameters For Simple Moving Averages

I'm having some trouble understanding the simple moving average lines that can be added to a quote graph from Google finance. This related Stack Exchange question indicates that the only input ...
1
vote
1answer
621 views

How to calculate the monthly inflation rate from CPI?

I'm wondering how the monthly inflation rate is calculated from the consumer price index? Here you can find the monthly CPI data from 1913 - 2016: https://fred.stlouisfed.org/series/CPIAUCNS From ...
1
vote
1answer
470 views

Calculating the number of years before an investment with increasing savings reach a certain value

I want to calculate the number of years required before an investment reach a certain value assuming increased payments. Ignoring the increase of payments, I can calculate using NPER (Google Sheets, ...
-1
votes
1answer
92 views

How to calculate a forecast [closed]

I've been looking around to know how to calculate a sales forecast for sales generated. Not profit/loss; only sales made. Oracle's calculation shows some examples but I'm not sure if that's the ...
1
vote
2answers
277 views

How to retroactively calculate what the return on an investment in an index fund with monthly contributions would have been

If I had invested $1000 on 1/1/2000 in the S&P500 and each month I invested a further $1000 in to the same fund for 10 years, how would I calculate the return on investment I have made, accounting ...
-2
votes
1answer
144 views

How do you calculate the RRR on a portfolio given component returns?

Imagine you invest in the following stocks: $11,600 of A, $7,800 of B, $14,900 of C, and $3,200 of D. The required returns on these stocks are 10.7%, 15.4%, 3.9%, 9.1%, respectively. What is the ...
0
votes
1answer
142 views

How to calculate the compound interest for the following scenario

Mr A plans to invest 100000 every year for 15 years (he will withdraw money at the end of 15 years) and is expecting a return of about 12%. I know the FV function of excel but how to use it ?
1
vote
1answer
95 views

How is minimum payment calculated for this daily amortized loan?

I'm trying to figure out how the bank calculated the minimum payment for a personal loan. Starting Principle: $6,800 Interest Rate: 13.750% Loan Term: 36 months Payment Frequency: Monthly Start Date: ...
2
votes
3answers
472 views

How much should you save if you want to receive $100M each year?

This is the problem I have to solve: Assume you are 30 years old right now. You believe you could save for the next 20 years, i.e., once you have 50 years old. For the next 10 years, and until your ...
3
votes
1answer
26k views

How to calculate the closing price percentage change for a stock?

When viewing a stock on Yahoo Finance: http://uk.finance.yahoo.com/echarts?s=ASC.L#symbol=asc.l;range=1d;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=...
0
votes
1answer
108 views

Compute average price even if I do not have the prices before

I want to know how much my average price will be after I buy a stock. The problem is I do not have the records of how much I bought the stock before. What I do have is this (sample only): Stock X: ...
3
votes
1answer
357 views

How do I calculate the percentage interest rate based on the monthly payment in a savings account?

I had 189,349.16 in my bank and my bank gives profit every month. I got 356.68 Rs profit this month. How do I calculate percentage of interest on this money?
1
vote
3answers
2k 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 ...
11
votes
1answer
1k views

Why didn't the balance go down on the student loan after a big check?

I owed about 45k on student loans. I wrote a check for around 10k to get the balance down. What I expected to happen was, for the balance to go down more than 10k, because that 10k would no longer ...
0
votes
2answers
106 views

Calculate money owed on shared loan

I am in an interesting situation that I am looking for help with. I went to college a number of years ago, as did my brother. My mother had two student loans (one for each of us) and a few years ago,...
7
votes
2answers
1k views

How does a monthly inflation rate work?

I'm struggling to understand the following inflation numbers for South Africa given here: http://www.tradingeconomics.com/south-africa/inflation-cpi Year Month Inflation 2015 Jun 4.7 2015 Jul ...
4
votes
2answers
2k views

“Rule of 72” For Higher Multiples?

The rule of 72 states that if I earn n% interest, I can divide 72 by n and get the approximate number of years that I'll double my money. Suppose that I wanted to find out how many years to quadruple ...
5
votes
3answers
12k 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?
9
votes
3answers
1k 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 $...
6
votes
2answers
4k 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 ...
6
votes
1answer
492 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 ...
4
votes
3answers
6k 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
6k 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 ...
3
votes
1answer
134 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
204 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 ...