# 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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11answers
66k views

### 15 year mortgage vs 30 year paid off in 15

I've found similar questions, but they all seem to focus on a preexisting 30 year mortgage and whether or not it makes sense to refinance to a 15. My question is a bit different. I have not yet ...
2answers
305 views

### Mathematics behind deciding to do a lump sum mortgage payment vs. RRSP contribution?

If I have 10,000 extra dollars, how could I decide between doing either: A lump sum mortgage prepayment (2.1% variable closed interest rate, 250k remaining balance), or, An RRSP contribution (...
2answers
16k views

### How would you figure the cost of something in the future including inflation?

Looking for an excel formula that can calculate the cost of something based on a current price that factors in price increases and inflation. For example a plane ticket cost (econ LAX to JFK) in 30 ...
1answer
446 views

### Income tax calculate on your per company or on my total income in year?

I don't know if this is right place of ask this question. But still need to ask. Now I start financial year with by company A. So company A only provide final settlement account ( including AVP ) in ...
0answers
176 views

### How to calculate interest charged on my loan given a series of dates & payments?

I want to calculate the interest rate payed for this loan using Mathematica. The initial amount was of 12000€, then they asked to pay 240€ for opening the loan and another 870€ for the insurance for ...
0answers
236 views

### How are the sub-periods derrived in TWRR Daily Valuation?

I've been looking at the TWRR Daily Valuation method and I'm trying to understand how to break the total performance period into sub-periods when there are irregular cash flows. As the article ...
2answers
174 views

### How can we determine how much income our savings could generate if we purchase an annuity?

I am 62 and my wife is 56. We have almost 1.5 M in retirement investment and 250 K in non retirement investments. I was wondering if we both retire in 6 years and turn all our investment into annuity, ...
3answers
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 ...
2answers
174 views

### How do I calculate the return on my stock _call_ option, similar to my _put_ example?

I'm trying to figure out the effective percentage return when I write ("sell to open") a stock call option. I think I've figured it out for put options. Consider this put example I think XYZ stock ...
2answers
647 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? ...
2answers
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 ...
3answers
166 views

### IRR Calculation

I have a series of cash flows, a \$1000 deposit, and then 5 annual withdrawals of \$500,\$400,\$200,\$200,and finally, \$100. I understand this is an IRR calculation, and set it up as follows: -1000+500/(1+...
2answers
2k views

### Formula for how to distribute a loan payment between multiple loans such that the remaining principal accrues the least interest?

Assume 4 loans (Balance @ p.a. interest): \$10,000 @ 5.5% \$5,500 @ 7.25% \$2,000 @ 5.5% \$1,000 @ 4.5% If I am looking to pay \$7,250 towards principal only, how would I calculate the ...
1answer
598 views

### How does Value get rounded in figuring out Bonds Value?

I was reading up on Bonds here on About.com Why Do Bond Prices and Yields Move in Opposite Directions? In the second example it offers: In this example, the opposite scenario occurs. The same ...
2answers
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 ...
1answer
97 views

### How can I calculate minimum payment on quick loan? [closed]

I am working on calculator for quick loans. Client can select how much he will pay monthly. Base on it payment schedule will be calculated. Payment interest depends on 1 payment period. Number of ...
1answer
614 views

### Which of these unrealized profit calculations is correct? And, why other calculations are wrong?

Which of these unrealized profit calculations is correct? And, why other calculations are wrong? @ \$10 per unit, \$1000 - Subscription (100 units) \$0500 - Cash dividend (50 units) \$0500 - Reinvested ...
3answers
5k views

### Is this the correct math for estimating federal taxes using marginal tax brackets?

(I updated this because I think I wasnt making myself clear in the first part of the question and I clarified what I'm trying to do. I'm just looking to use marginal tax brackets to derive a good ...
1answer
4k views

### How do we correctly sum up returns

Assume I have done 8 trades and calculated the profit (or loss) of each trade: Balance PnL 100 102 2.00% 105 2.94% 103 -1.90% 101 -1.94% 98 -2.97% 97 ...
3answers
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
1answer
119 views

### How should I include pension contributions in my UK Child Benefit calculations?

I'm using the gov.uk Child Benefit Tax Calculator and I don't know how I include my pension contributions in the "Pension contributions deducted from your pay" and "Pension contributions not paid from ...
0answers
2k views

### How do you use the formula for YTM when the compounding is semi-annual?

How do I calculate yield-to-maturity (YTM) with a simple handheld calculator? do we multiply n by 2?
3answers
128 views

### Personal Loan issuer online service

I have chunk of money that I would like to loan to my brother. I would like to charge him interest same as banks do. Is there a website or online service where I can enter the "loan" amount, ...
3answers
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?
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 ...
2answers
727 views

### How to calculate ROI on investments? [duplicate]

I looked through the previous questions, and couldn't find one that quite addresses my question. If I start with \$1000, and through investing it goes to \$1200(100 shares at \$10 go to \$12), I can say I ...
2answers
797 views

### How can I calculate (approximate) the future value of my investments? Is this formula appropriate?

I want to check to see if I'm meeting my investment goals, so I want to project forward my assets given a growth rate and a monthly deposit amount. What is the best formula to use for this? Is this ...
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 ...
1answer
223 views

### How can I check if my mortgage balance is correct?

Since I couldn't easily get my unpaid principal balance, I calculated my mortgage balance using a handful of online calculators. Today I took a look at the actual balance, and was rather surprised to ...
1answer
291 views

### Reasonable alternatives to using the Treasury rate as the risk free rate, e.g. for CAPM calculation?

For all practical purposes, the risk free interest rate is taken to be the short term Treasury bill interest rate. Let's say this rate is 0.5% per annum. But for an individual investor, if his bank ...
2answers
3k views

### When to use geometric vs. arithmetic mean? Why is the former better for percentages?

While computing the average price of a stock or index over a period of time, I have the choice between using an arithmetic mean or a geometric mean. Which should I use and when? I am reading a book ...
2answers
63 views

### Day of payment affecting Payment amount

I'm currently testing this Loan Amortization Software. I can enter in a Principal amount, Interest, Payment durations and future value in the end of the duration, When payments are to be made, ...
1answer
782 views

### Calculating the PV and the Remaining Payments for Loans with Steps

I thought I was able to figure this out, but unfortunately my numbers did not work. If someone would please help with this scenario, then that would be greatly appreciated. Say I'm taking out a \$110,...
2answers
112 views

### Loan Amortization with Insurance

I'm wondering how does you calculate payment amount of the loan amortization schedule if insurance is involved. "Desjardins" insurance on loan is such that for every \$1000 outstanding balance, you get ...
1answer
306 views

### How to determine withholding so at end of the year I neither owe more, nor get a refund?

A while back I was on a W2 job and I would get a large sum on my tax return. At one point I found a calculator that helped me figure out how to configure my W4 so that I would neither owe nor be owed ...
1answer
2k views

### Seasonal Loan Amortization

Hi I can compute a Basic Loan Amortization Schedule, But now I'm trying to Calculate a Seasonal Loan Amortization Schedule . So for example A loan starts at January And Will go on for 3 years, with ...
3answers
2k views

### What is the “rule of 70” or “rule of 72” with regards to investment, and how do I apply it?

What is the "rule of 72" (sometimes called the "rule of 70") with regards to investment, and how do I apply it?
1answer
932 views

### How to calculate how far a stock price can drop before a broker would issue a margin call?

Let's say the margin requirement for a stock XYZ is 50%. The current price of XYZ is \$150/share. Let us say I put in \$100, and borrow \$50 from the broker to buy a share. Typically, how far can the ...
2answers
161 views

### How to calculate whether it's better to pay my education loan, or my home investment loan?

I have an education loan @ 11.5 % for 1,000,000. I can pay it in 3 years. I am planning to make an investment by buying a home @ 10.5% for 2,200,000. Term = 20 yrs. I am thinking if I sell the house ...
2answers
416 views

### Suppose earning an APR of 7% for 5 years, with interest compounded quarterly. What is the EAR? What is the Total Return?

Suppose you earn an APR of 7% for 5 years, with interest compounded quarterly. What is your EAR? What is your Total Return? The part I am confused is "with interest compounded quarterly" The ...
3answers
4k views

### Issuing bonds at discount - computing effective interest rate

Suppose Southwest Airlines issued \$100,000 of 9%, 5-year bonds when the market interest rate is 10%. The market price of the bonds drops, and Southwest receives \$96,149. First of all, in my textbook ...
3answers
1k views

### Equation to determine if a stock is oversold and by how much?

Given a stock, is there any mathematical equation than can determine if that stock is oversold? I will use the equation against all stocks in the market to generate a sorted list of oversold stocks.
2answers
1k views

### Calculating accumulated value of an annuity with changing payments?

In a series of 40 payments the first 10 payments are 10 each, the second 10 payments are 20 each, the third 10 payments are 30 each, and the final 10 payments are 40 each. The payments are equally ...
1answer
109 views

### How to calculate interest payments without EBIT

is there a way to calculate interest payments without EBIT. For example if I am searching for Apple Inc. in google finance I don't have Interest Payments in the income statement, there is no EBIT ...
1answer
658 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 ...
1answer
769 views

### Net Present Value (NPV) Question?

i hope i'm right here for asking. I'm a little stuck with this question any help is appreciated You have invested 5 million Euro in a wind turbine and expect an annual return of 600,000 Euro (6000 ...
3answers
1k views

### How can I calculate yearly interest of my investment gain?

I'm trying to figure out the yearly interest of a potential investment. Lets say I invested \$10 000, 13 days later i cash out and I now have \$10 500. The interest here is 4,76% for 13 days. But can I ...
1answer
88 views

### When performing wash sale calculations does time of day matter?

For wash sales, I've read there is a 30-day window both before and after an opening trade during which a loss from a closing trade becomes a wash sale with respect to the opening trade's cost basis ...
2answers
6k views

### What are the standard industry practices or disclosures for computing compounded interest on retail deposit accounts in the United States?

I'm seeking to understand how my bank calculates the interest on my various deposit accounts (Money Market, Interest Checking, Savings, Certificate of Deposit) in order to simulate and predict it to a ...
3answers
448 views

### I'm a programmer and need a formula for calculating overal ROI [duplicate]

I'm programming a web app to track my hedge fund performance. I'd like to find my overall ROI for all time. If I had a beginning balance and my current balance then finding the ROI is easy. For ...