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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14
votes
10answers
3k views

Should I pay off the credit cards now or do the monthly payments thing?

I have 3 credit cards with a total balance of about $36k. Two of the cards are at 2% and the last one is at 0%. With the current payment structure, I'll be debt free in 25 months. I recently came ...
2
votes
3answers
2k views

Discussing stock and stock index movement: clarifying percentage vs. points?

I'm trying to understand more about financial terminology used in news reports, but I'm having a hard time understanding what is meant when someone says the following: "NASDAQ was down X points today ...
5
votes
2answers
2k views

Discussing real estate appreciation: Compound vs. simple interest?

When people say real estate has appreciated 8 % over the past 5 years, do they mean 8 % compounded annually? or simple interest annually?
5
votes
2answers
630 views

How to calculate the market capitalization (fair market value) of the Metropolitan Transportation Authority of New York?

I'd like to calculate the fair market capitalization of the Metropolitan Transportation Authority of New York, or learn how to do so of any comparable public interest corporation (ie an entity without ...
2
votes
1answer
1k views

How is the adjusted family net income calculated for the Ontario Sales Tax Transition Benefit (OSTTB)? What is included in that adjustment?

How is the adjusted family net income calculated for the Ontario Sales Tax Transition Benefit (OSTTB)? What is included in that adjustment?
2
votes
1answer
248 views

How to arrive at the fee-adjusted APR (accounting for balance transfer fee, but not inflation)?

I'm trying to figure out the fee-adjusted interest rate paid when incurring a balance transfer fee on a loan, not accounting for inflation. If the APR is 4%, the loan 5000, the transfer 2% and you ...
5
votes
2answers
622 views

Calculating the most optimal way to pay off credit cards

I have 3 credit cards which I am slowly paying them off. Card# Balance Monthly Interest Months to pay of Minimum Payment at current rate Payment 1 $...
5
votes
2answers
22k views

How to calculate total interest paid on a decreasing balance?

I am trying to come up with the equation which will give me the total interest to be paid on something given a fixed interest rate with a fixed payment for a given period of time. The interest is ...
2
votes
4answers
8k views

How can I calculate how much tax I will pay

I'm a consultant thinking of taking a full time salary job. I live in WA state and have a family. How can I calculate how much tax (federal, social security, medicare) I will pay? I've used http://...
4
votes
3answers
599 views

Credit card grace period for pay, wait 1 day, charge?

Does a credit card grace period apply in this situation: March 1: I charge $1000 to my card. March 8: My billing cycle ends (ie, this my card's closing date). My due date is March 28th. March 9: ...
3
votes
2answers
529 views

How is the 6th year on a 5/1 ARM calculated?

Given a 5/1 ARM for a $350,000 loan at a rate of 2.875%: After 5 years of paying at 2.875%, let's say the balance is $310,000. On the 6th year, the first adjustment kicks in an kicks the rate up 1% ...
8
votes
2answers
1k views

Credit card interest calculator with grace period & different interest rate calculation methods?

Is there an (ideally online) credit card interest calculator that includes grace periods and lets you choose the interest calculation method (eg, "adjusted balance", "average daily balance", "two-...
4
votes
2answers
4k views

How to calculate incremental interest rate for home refinancing?

Summary: When you refinance your house and borrow more money, how to calculate the incremental interest rate you pay? I currently owe $95K on my house, 4.75% interest rate, $510 monthly payment (...
4
votes
4answers
3k views

How to calculate credit card interest with respect to grace period transactions?

If my credit card currently has a $0 balance, and I make a transaction and pay it back within 25 days, I won't pay any interest, even if I had a balance and was paying interest previously. Is that ...
10
votes
7answers
526 views

What single metric is the ultimate measure of personal wealth? [closed]

More specifically, what is the single metric you would use to monitor personal wealth?
3
votes
1answer
544 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 ...
11
votes
7answers
12k views

Why do mortgage affordability recommendations use gross income?

Whenever I see someone ask how to calculate how big a mortgage he can afford, the answer almost always comes back as a percentage of gross income. Why use gross income as the baseline? Why not net ...
3
votes
2answers
9k views

Formula for calculating real cost of a deductible expense

Nice round numbers: say I perform a job that gets $1000 gross (call this g) in which I incur $100 in expense (call this e). The expense is fully deductible. Assume my marginal tax rate is 25% (call ...
6
votes
1answer
307 views

If you owe tax, how does the IRS failure-to-file penalty work?

If you owe tax, how does the IRS failure-to-file penalty work?
5
votes
3answers
11k views

How to calculate the rate of return on selling a stock?

How to calculate the rate of return on selling a stock?
10
votes
3answers
2k views

How to determine new, lower interest payments after a lump sum mortgage payment, i.e. new amortization schedule?

Here's a financial math problem: I have a mortgage at about $78,0000 with 5.5% interest and 56 of 360 monthly payments were made. I'm currently paying about $360/month in interest charges. If I pay ...