# 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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### 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 \$...
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 ...
505 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 ...
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 ...
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 ...
136 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 ...
218 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 ...
161 views

### How to calculate interest gained by paying off credit card right before the due date and not earlier?

By not paying off the credit card statement amount right after it is generated but closer to the due date, the same funds can be in a savings account generating interest. I'd like to know precisely ...
1k views

### Calculating interest accrued with extended Initial Payment Date

I'm wondering how do I calculate the interest accrued if the intervals aren't perfect. For example Principal - \$100,000 Interest - 8% Compounding monthly Disbursal Date - January 1st, 2016 Initial ...
8k views

### What's the beta of U.S. treasury bills?

Is it zero? My reference equation is: Bi = σim / σm2 Is the top sigma of im considered to be zero, since treasury bills have a fixed payout? If not, how do you suggest ...
711 views

### How do I calculate the past value of a loan?

I have a loan that was originally \$100,000. It is worth \$116,971.41 today. It has been accruing 6% annual interest, compounded daily. I do not know the start date. How do I calculate what the value ...
117 views

### Compound Rate as a Function of Market Interest Rate

I have these two pictures from Investopedia. Here is the link to the page. I am confused by this concept. How is the quarterly compound rate 11.825% with a 12% annual rate? Furthermore, how is the ...
696 views

### Does a one time additional payment reduce the interest paid on a Prosper or Lending club personal loan

I have a loan with Lending Club with a certain interest rate. So every month I pay the principal as well as about \$200 in interest. Assuming the loan balance left is \$20000 and the interest rate is 7%,...
4k views

### Cash Advance causes recurring interest fee after paid in full

In January I made a cash advance of \$110 with my credit card. In Februaury, I paid off January's balance (+\$10 cash advance fee +\$1.82 cash advance interest) in full by the statement due date. This ...
823 views

### How to calculate take home salary in Sacramento, California? [duplicate]

How can I calculate my take home pay in Sacramento area in California? I have an offer of USD 95,000 per year in Sacramento. After searching multiple sites for tax calculations, I understood that it ...
619 views

### How to calculate the effective interest rate of a loan that must be paid back with interest as lump sum

An example question asks: Student Bank has agreed to lend you funds to complete the last year of your degree. The bank will lend you \$2,400 today, if you agree to repay a lump sum of \$4,000 in ...
79 views

### Dividends Growing Faster than Cost of Capital

If a share's dividends are assumed to be indefinitely growing faster than the cost of capital (discount rate) then the net present value of all future dividends for the share can be shown to be ...
2k views

### How to know how much interest paid per payment in a fixed tenor personal loan

I recently took up a personal loan. I do not have any financial background and I do not have any issue paying the loan but I am just curious on how they come out with some numbers. To be precise, the ...
43 views

### How can I retrieve any weights from the portfolio on the EF?

Efficient Frontier image In an efficient frontier build with sample moments, I'd like to retrieve weights from any portfolio on the efficient frontier knowing only the standard deviation and the ...
392 views

### How to find leverage for futures [closed]

In my understanding, leverage is the risk we take for our investment. That is highly leveraged instruments have high risk and high potential reward. But how can we calculate leverage of futures? ...
15k views

### Do I owe taxes if my deductions are higher than my income?

My total income this year was \$16,604 (wages, interest, and business income). My deductions (including IRA, personal exemption, standard deduction, and self employment tax) was \$17,404. TurboTax ...
137 views

### Calculating EPS

I have started teaching myself basic business stuff and have a question regarding calculating earnings per share. Q: [bunch of numbers for revenue, expenses...] At the beginning of year: 80,000 ...
2k views

### Calculate EPS yourself

According to finance.yahoo.com, PriceSmart Inc. (PSMT) has an EPS of 2.1 as of May 14, 2012 close. Where exactly do they get the earnings from? I thought I understood the EPS, but when I tried ...
9k views

### Time-Weighted Rate of Return & Money-Weighted Rate of Return

Background I am trying to figure out the computational difference between Time-Weighted Rate of Return (TWRR) and Money-Weighted Rate of Return (MWRR). Let's say, I have a portfolio looking like ...
186 views

### Put-Call parity - what is the difference between the two representations?

I have seen these two terms for put-call parity: S + P = C +Ke^(-rT) S + P = C + K/(1+r)^T Which one is the correct formula? When to use each of them? What is the diffrence?
363 views

### How to compute real return including expense ratio

I am currently hesitating between 2 similar International Index Fund, FSIVX and FIENX. FSIVX have an expense ratio of 0.12% while FIENX have 0.63%. I can try to compare them side by side on google ...
479 views

### Recurring deposit interest calculation compounding period rule in India

Is there any RBI guideline or rule or guideline available for Recurring Deposits interest calculation compounding period for Indian Banks. I find it different for different banks in India and the ...
2k views

### What's the equation for savings growth, that considers contributions?

I'm looking for the equation that basically works like this "Assuming you have X saved, and save Y more a year, and your savings grow at Z percent, you will have S after T years."
118 views

### Should total revenue or profit be proportional to money x investment time

I'm currently supervising a project with investors, and the following problem arrived: - How should I calculate the profits of each investor, i.e. should profit itself (after taxes and other ...
946 views

### How do I calculate the dividend yield for Disney Co?

I'm trying to "estimate" the dividend yield for Disney (NYSE:DIS). Let's pretend stock price will stay at \$57 and the tax rate is 1%. Is it really the case that after 3 years with this stock the ...
1k views

### Predicting future expenses

I'm trying to develop a tool that predicts my future expenses based on my past expenses. Example: I've spent \$150, \$200, and \$180 on fuel during each of the last three months. Accounting for the ...
1k views

### If I lose 20%, what rate of return do I need to break even?

If the account is down 20%, what rate of return over the next year do we need to get to be even, in other words make back the 20% we lost? The rate of inflation in this case is zero.
322 views

### How do I calculate the modern-day value of pre-euro currencies (inflation correction)

I'm trying to calculate the modern value of 1950's Dutch guldens (guilders). Usually I'd use Wolfram Alpha for such a task, but it doesn't seem to understand pre-euro currencies. This works fine: ...
244 views

### What is the meaning of “\$N industry”?

For example, in the sentence "Semiconductor fabrication is a \$100 billion industry.", what exactly is being said?
120 views

### In need of Algebra assistance

For some reason, my Algebra is getting rusty and I need help solving for the Purchase of the following: (Sale - Const - Purchase) / (Const + Purchase) = ROI
412 views

### How do I calculate the Present Value of a future amount

I have a requirement to calculate the present value of a future value taking into consideration an interest rate and tax rate. This is to be used in an insurance calculator so I need the answer to be ...
1k views

### Loan Amortization with Daily Calculation

I'm trying to solve this Loan Amortization Question. Principal = \$125000 Interest = 8.5% Compounded semi annually Duration is 10 years (120 months) Monthly Payments Loan given on 7/31/2009 First ...
645 views

### Average interest rate vs compound interest rate

(1) Taking an average of %profit (2) Is calculating %profit by (end-start/start)*100 (3) Is (2) divided by 10 periods My questions are; What is the REASON why (1) and (3) are different values? ...
4k views

### Amortization Payments with a delay in initial payments

Typically a loan is disbursed and a month later is when payments are to be made. But there can be an agreement where it's to be delayed for a year or as short or as long as they want. I'm wondering ...
593 views

### How to find an optimum linear combination of various investments?

Say an investor with 1 million dollars want to put his money on several investments. Say investment outcomes on those investments are \$x_1, x_2, x_3, x_4, ... x_n\$ The investor need to put w1 on x1, ...
3k views

### How to calculate depreciation?

I am not accountant and my question could be trivial but I will ask it. Let's say that I bought a car that cost \$50,000. The maintenance cost over 5 years is \$25,000. The revenue of the car over 5 ...
150 views

### Why Are Percentage Gains Used for Capital Gains Tax Calculations?

In the context of UK investments, I'm led to believe that encashing a general investment account (OEIC/UT) can result in a capital gains tax liability. My understanding is that when calculating this ...
107 views

### Calculating long intervals of Interest with Simple Interest Formula

My last post Calculating long intervals of Interest calculates interest using compounding formula. But what about calculating simple interest accrued where the day count is actual/actual and it goes ...
130 views

### Does the Social Security taxable wage cap also cap payouts, not just contributions?

I recently saw Bernie Sander's quote: Right now, Trump pays the same amount of money into Social Security as someone who makes \$118,500 a year. Time for a change. Now this seems to be true. There ...
945 views

### If you buy something and sell it later on the same day, how do you calculate 'investment'?

Source: p 603, A Concise Introduction to Logic (12 Ed, 2014) by Patrick Hurley A similar misuse of percentages is committed by businesses and corporations that, for whatever reason, want to ...
473 views

### Can anyone help me understand my loan payment?

My loan was \$40500 for five years with 9% interest per year. I do not understand the total I would have to pay. I have been paying 700 per month since 2006 and it feels like I've been paying forever. ...
691 views

### Calculate the optimum contribution to Provident Fund(PF) account

I am fresh out of college and started working and want to work out how much I should contribute to my Provident Fund account to maximize the benefit from tax deductions. I am from India, so for those ...
48k views

### Should I pay an extra \$100 every month on my mortgage or pay \$1200 extra every year at the beginning of the year?

I can pay \$1200 extra once a year or \$100 every month - which is better? The first one does sound better, but for a 30 year mortgage, is it that significant? Say the mortgage is for \$200,000. ...