All Questions
Tagged with compound-interest interest
40 questions
0
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1
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76
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Different method leads to different result - What is wrong?
In the reference below, the following simple problem is presented:
Bank of Ireland offered a 9 month fixed term reward account paying 2.55% on maturity, for new funds from €10,000 to €500,000. (That ...
- 103
1
vote
1
answer
114
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How to calculate a mixed interest rate?
I would like to calculate the realized interest rate of my stocks. How can I do that?
Example:
I buy stock A for 1000$ in year 1. After 3 years it is worth 1158$ (+5%/a, 158$ profit)
I buy stock B for ...
- 113
1
vote
1
answer
140
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Calculating CAGR for Ordinary annuity
Basic compounding interest question:
I paid 5000 every month for 12 months and got 67500 in return, what was the annual compounding intereset rate?
I considered formular as follows:
FV = PMT(((1+r)^...
- 173
0
votes
0
answers
31
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How We Decide n in Compound Interest Rate Table When Annual Expenses Increasing After Certain Year?
I don't understand that, in this question's solution for HEPS9, why we take n as 6. And why we use A/G for SP240 and P/G for HEPS9.
Question:
Solution:
Compound Interest Rate Table:
0
votes
1
answer
78
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If you pay off a variable APR daily accruing credit card before the end of the month, is there interest?
Can you avoid 100% of interest on a card that accrues interest daily, by paying it off in full before the end of each billing cycle?
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-5
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2
answers
201
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Compound Interest Problem [closed]
Vanessa decides to invest R 140,000 into an account earning 13.5% interest per year, compounded quarterly. This new account allows her to withdraw an amount of money every quarter for ten years after ...
1
vote
1
answer
375
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How does the continuously compounded interest formula work in terms of months?
The continuously compounded interest formula is:
Pe^rt
Where:
P = Principle
e = 2.718...
r = Annual interest rate
t = time in years
If instead of an annual interest rate, I got a monthly interest ...
- 47
0
votes
2
answers
178
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Help Calculating Monthly Earnings with two co-existing APYs in same "Savings" Account from T-mobile Money
Background
I have a T-Mobile Money (via BankMobile, a division of Customers Bank) interest checking account.
I'm trying to track earnings per month but I'm a bit confused by their fine print and their ...
- 107
1
vote
4
answers
2k
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Why do banks pay a compound interest on deposits instead of simple interest?
Why do banks pay a compound interest on deposits?
Obviously they'd be better off paying a simple interest instead, which would still be attractive to their customers.
However I figured that in such a ...
- 121
1
vote
2
answers
184
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Can I renegotiate desirable rates and terms on a paid-off credit card?
I would like to keep and use my business credit card, but I do not need it. I paid off around $10k today which took my balance to zero, now that my 0% introductory rate has ended. (The card is around ...
- 217
2
votes
2
answers
136
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Find ending balance given return rate and amount added each year
If I have an investment that grows 10% per year, and every year I add an amount, is there a formula that can be used to find my ending balance after n years?
The following demonstrates this:
year 0: ...
- 174
7
votes
3
answers
4k
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How to calculate savings account interest if you deposit and withdraw irregularly?
It's easy to calculate interest on a fixed principal. If you have for example $1000 deposit on your savings account and the rate is 0.25% compounded every whatsoever and you want to know how much is ...
- 71
4
votes
1
answer
770
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How is interest calculated on a UK type 1 student loan?
On my student loan annual statement it says The Student Loan Company applied interest to my balance every month but only received one lump sum payment at the end of the year from HMRC, even though ...
- 747
3
votes
2
answers
313
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Calculating Annuities With Different Compounding period and Interest Period
Can anyone Help me solve this?
In July 2010, Mike deposits $100 semiannually into an account compounding quarterly at 7% nominal annual interest for three years.
In July 2013, he increases the ...
- 31
0
votes
1
answer
151
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How to calculate equivalent interest rate of gains with monthly contributions?
I started the year with a known amount of funds in my account and I make regular (assume equal) monthly payments into the account.
I know how much my gain/interest for the year is. I believe the ...
- 747
0
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2
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2k
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Help with a homework question calculating interest
Question :
Imagine that you deposit $6,000 a year, starting one year from today, for four years into a savings account paying 6% per annum. (That is one deposit of $6,000 per year.) How much money ...
2
votes
2
answers
317
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How much do I need to save per month in an interest-bearing account to reach a certain account balance in a certain number of years?
How do I calculate what my monthly contribution should be to an interest bearing account, knowing how much I'll need to have in the account in a given number of years?
For Example,
I need $8,203.03 ...
- 21
1
vote
1
answer
432
views
When to make Credit Card payments on large balance with interest
Consider the following scenario:
A credit card has a balance of $5000 that cannot be paid off at this time. Every week I earn $500 that is deposited to my bank. My monthly minimum payment is $200. ...
- 113
3
votes
2
answers
2k
views
interest compounded daily vs monthly
I want to compare two saving accounts with same APY, but one has interest "compounded daily and credited monthly" and the other has interest "compounded monthly and credited monthly". Which will yield ...
- 131
5
votes
4
answers
3k
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Do pension pots get interest? [closed]
Pension pot is the money, the employee and sometimes the employer and the government pay that gets accumulated into pension fund.
But my question is, that this pension fund is basically a bank ...
- 153
3
votes
3
answers
631
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How to know how much money was paid, and how much was spent paying off interest
I would like to buy a car, and found out about the 20/4/10 rule today. I definitely have more than 20% downpayment saved up, due to that I am not concerned with the 20 part. I am more concerned about ...
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11
votes
4
answers
93k
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How does compound interest work with stocks? [duplicate]
I just learned about compound interest, and I want to know if I understood it right: You buy a stock, and then you just keep it. And over time, you will just earn interest on your interest. Is that ...
- 111
1
vote
2
answers
824
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Compound Interest & Mortgages
Mortgages are compounded 2 times a year in Canada and 12 times a year in the USA. However, I read that mortgages are simple interest and not compound interest because you pay the interest for each ...
- 27
0
votes
2
answers
11k
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Calculating Compounded Salary Increase Percentage with Multiple Years and Durations
I am trying to calculate the cumulative salary increase across 10 years. The issue is that some union members received raises multiple times a year, and other years they received no raises. I am ...
- 101
0
votes
4
answers
510
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Is it possible to borrow money to accrue interest, and then use that interest to pay back the borrower + fees?
Say I want to borrow $225,000.00 to accrue interest on a 1.20% APY account. I promise the lender that I'll pay them a fixed-rate of this interest with agreement that I cannot withdraw nor touch the ...
19
votes
2
answers
74k
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How do I calculate monthly compound interest in Google Sheets?
I have a financial spreadsheet with a column of all my deposits into my savings account. The leftmost column lists the dates of the deposits. Now, let's say my savings balance is $100.00 and my ...
- 301
1
vote
7
answers
702
views
Why "N-year" loans (and other complications)? Why does a loan need so many parameters?
If the title sounds ridiculous, please hear me out before downvoting.
Let's start simple. You have too much money on your hands and want to start a loan business.
If you neither want to gain nor lose ...
- 3,385
2
votes
1
answer
1k
views
Why does my interest charged (on loan) fluctuate from my own calculations?
I just want to know if I am calculating the interest correctly. Or is the interest rate is fluctuating slightly? Its not really that big of a fluctuation (we're looking at a range of 5-10 cents off). ...
- 33
1
vote
2
answers
139
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Time given future value of reoccurring deposit
I've recently come across the follow formula for calculating future value with reoccurring deposits formula. However, I have been unable to solve for t. I essentially want to find how long it will ...
- 23
1
vote
3
answers
487
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Comparing the present value of total payment today and partial payments over 3 months
I'm trying to buy something. I can either pay $2495 in a lump sum payment, or $997 over 3 x monthly installments.
Let's say I can invest in the stock market and get an 8% return on my money.
What's ...
- 21
1
vote
2
answers
215
views
How to get interest earned from start of repayment to a specific date on a declining balance?
I need a formula in getting the interest earned from start of payment of my loan to a specific date. I know the formula for the current due interest, which my company have given me in excel:
days = ...
3
votes
1
answer
192
views
The penalty on early redemption of a personal loan
According to the TOS written here: https://www.sc.com/sg/personal-banking/tnc/en/_pdf/cb_all-tnc.pdf (bottom of page 51)
37.2 The following terms and charges will apply if you close the CashOne ...
- 165
2
votes
2
answers
3k
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home loan part payment with emi effect - revised emi amount?
Loan Amount 1,215,371.00
Annual Interest Rate 10.15%
Term of Loan in Years 12
First Payment Date 10/09/2014
Payment Frequency Monthly
Compound Period Monthly
...
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0
votes
1
answer
185
views
Compounded and Simple Interest Rates
Suppose we have a loan worth 10000 that is being repaid late as a lump sum on a given day 30 days after the due date. Suppose the original interest rate is 5% so that the amount owed before late ...
1
vote
1
answer
6k
views
Annuities and varying interest rates?
The gist: Let's say I have $12,000 and have $240 a week in which I can invest into an ordinary annuity. Let's say I invest $1040 a month as opposed to $240 a week. The interest rate is 3% p.a. ...
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2
votes
2
answers
463
views
Effective Interest Rate Interpretation
Assume a $1,000 loan for 24 months, with monthly interest rate 2.5%, and monthly payments ($55.91 as calculated by any online tool, e.g. here).
This will give us annual interest rate (air) of 30%, ...
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0
votes
1
answer
4k
views
What is the formula for calculating the amount of money I end up with in a given period (salary and compounding effect)?
I'll give a concrete example (couldn't find a similar question):
Let's say I have an amount of money M at time t = 0 (first month).
Every month, I get a given amount (let's say constant) of R
On my ...
- 111
3
votes
1
answer
266
views
Understanding Effective Annual Interest Rate concept
I am trying to understand the effective interest rate concept with an example. All I know about it is the following formula:
EAR = (1+r/n)^n -1 , where
n = number of periods
r = stated interest rate
...
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2
votes
3
answers
1k
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Interest rate question
I'm having a little trouble figuring this out. Suppose I took out a loan with the following terms:
Loan Amount: 1,000
Interest Rate (APR): 10%
Compound Frequency: Monthly (12 compounding periods)
...
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10
votes
2
answers
3k
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Continuous compounding in practice
A common explanation for the mathematical constant e (2.71828...) is that it is the factor by which an investment would grow at 100% interest rate over a period if it is continuously compounded.
In ...
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