Questions tagged [interest]

for questions that relate to interest. Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets.

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1answer
53 views

Formula for time taken to pay off loan with annual interest and monthly repayments

I am trying to find how to work out the period of time it will take to pay off a loan. There are plenty of online calculators out there but I cannot find the formula they use. I want to recreate the ...
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1answer
90 views

Pay seller from escrow before closing on property so mortgage can be finished?

Let's say seller does not want to grant extension to buyer so his lender could finish mortgage paper work. However, buyer has enough cash on hand and is completely capable to pay seller by original ...
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0answers
71 views

Does Canada respect the tax-free status of National Savings certificates for residents who left the UK?

I know Canada and the UK have a tax treaty that is designed to prevent double-taxation. But I don't know if it extends to honouring the tax-free status of government-issued savings certificates. ...
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2answers
254 views

What is the cheapest way to pay off this loan?

I recently took out a loan in order to buy a car for work. The contract is over a five year term, with a total of 60 monthly repayments, at an interest rate of 13% pa. The way the lender wants me to ...
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10answers
9k views

How can I buy things with monthly payments in the US?

I am a new international student in the US. In our country we didn't have credit cards like in the US and this is a new system to me. If I get a new credit card in the US with a $2000 credit line/...
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2answers
130 views

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 ...
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1answer
48 views

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 ...
2
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1answer
27 views

How to calculate perpetuity when interest calculation interval is different from the cashflow interval

I’m trying to calculate the present value of an investment scheme I was suggested with. The scheme is, I have to invest say $100 in every quarter perpetually. Now I know how to calculate it (the ...
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0answers
54 views

What's the value of zero interest installments under high inflation?

Context: high inflation country. Let's say 3% montly inflation. A shop offers goods in monthly payments with 0% interest. For example you buy an applliance worth $100 in 12 montly payments of $8.33 ...
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4answers
4k views

How can bonds reach 0 and negative interest rates? why would someone buy them? [duplicate]

I know what coupon rate and yield to maturity is but I do not understand very well the interest rate of 0.07% in 1 year Treasury bonds, for example. And how can bonds reach 0 and negative interest ...
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0answers
39 views

TurboTax: Cannot enter interest/dividend in MI state return

My wife and I are filing returns jointly. My wife was a part-year resident of MI and I was a non-resident of MI. She had some income from interest/dividend but TurboTax does not give us any way to put ...
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2answers
212 views

Have I correctly understood the logic of lending money to a bank? [closed]

Let's say that I am able to convince my local bank to borrow 1 Bitcoin from me today, with them allowed to hold it for at least a year before I am able to ask them to give it back. After a year, if I ...
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0answers
64 views

Pennsylvania Taxation of Treasury Bonds Purchased on the Secondary Market

How does Pennsylvania tax the following items for TREASURIES (purchased on the secondary market): Accrued Market Discount (1099-B Box 1f) Bond Premium on US Treasuries (1099-INT Line 12) Accrued ...
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0answers
51 views

Who earns the interest during a naked short sell, where the shares haven't been located yet and fails to deliver

When someone naked short sells, who do they pay the interest to? If they never locate the shares, then there isn't a shareholder to pay. Do they pretend to pay interest? Do they actually pay interest? ...
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1answer
63 views

Can a bank continue to allocate payments to interest even after they have taken what the contract states?

I purchased a car, borrowing money from a bank for the auto loan. Long story short, I asked the bank for a detailed history of my payments, and they sent me a document that shows every payment I've ...
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5answers
6k views

Interest: what is the most strategic time to make a purchase: just before or just after the statement comes out?

In order to pay a lower interest rate on my credit card balance; is it better to make a purchase just BEFORE the statement cycle ends and the next one begins; or just AFTER the cycle ends and the next ...
2
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2answers
56 views

Can adding a 1098 from another mortgage bank lower my deductible interest? How?

I'm a long-time homeowner. In 2020, I refinanced my home. Due to the refinance, and switching mortgage banks, I made mortgage payments to three different banks in 2020: Bank A (original mortgager): 8 ...
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2answers
54 views

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 ...
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1answer
335 views

Do rich people never have to pay back what they borrow with their wealth as security? Does the same apply in my case?

I heard something very interesting today. Apparently, people who are the descendants of early New York City plot owners, never sell their land. Instead, they borrow money from banks (or some entity) ...
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7answers
3k views

How does a bank lend your money while you have constant access to it?

How do banks / fintechs lend your money while you have constant access to it, ie. can withdraw at any moment? I assume there is some kind of liquidation pool, but how exactly is that managed with ...
2
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1answer
88 views

Should I take money out of my CD to pay towards my mortgage?

I need some help with the correct math to help me answer this question. I have a CD that has a 10 year term, earning 4%, that I put $25,000 into to start. I have roughly 2 years remaining on my CD. I ...
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1answer
53 views

Does bank interest paid offset interest received?

I'm gathering information for my US income taxes. I received $100 in interest on my savings account. However, I also paid $100 in interest on my overdraft line of credit. Do they cancel out such ...
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2answers
158 views

what percent of my investments can I take out annually if I want it to still grow after beating inflation and taxes annually?

I'm interested in learning how much money one might have to save and invest if they are aiming to live purely off of the capital gains from their investments while still allowing their money to grow ...
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0answers
40 views

Interest Rate and Present Value Question

I'm trying to answer the hypothetical question posted below (for educational purposes) but I'm very confused about its wording regarding the interest rate. If I assume that the interest is compounded ...
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1answer
54 views

Are all cryptocurrency exchanges and financial lending institutions required by U.S. law to provide a 1099 form to the investor?

I am currently thinking of putting up a portion of my crypto assets on a reputable cryptocurrency lending platform. I asked them if they provided a 1099-INT for the interest that I would earn on my ...
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1answer
146 views

Calculate value of investment with variable interest + periodic payments (Excel/Google Sheets)

I know about FV and FVSCHEDULE but how do I combine them? Say I make monthly payments into an account with a variable interest rate ... how do I calculate future value? Or do I have to build out the ...
3
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3answers
242 views

What is a good starting point for a new investor?

Firstly to clarify, I am not looking for financial advice, I am trying to find out where is a reasonable starting point for someone who has no experience, some cash in an ISA and is risk averse. I've ...
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1answer
60 views

Unpaid accrual expenses [closed]

Let's say for-profit corporation ALPHA INC. borrowed $1M from person JOHN DOE, who is also an executive officer of the corporation. The corporation ALPHA INC. uses accrual accounting method, while ...
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0answers
70 views

How do you treat interest (both simple and compound) earned on cryptocurrencies?

Currently, on an exchange platform, I am pledging about 10 BCH (approx. $2800) which should earn interest p.a. of 8 % paid out every three months. The interest is paid in BCH, meaning that 8% of 10 ...
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2answers
61 views

Should I focus on repaying private or federal student loans during Covid-19 and CARES act?

The CARES act puts the interest rate for federal student loans at 0% until December 30th and there are no mandatory payments for student loans until that time. I owe $32,000 in federal loans, normally ...
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4answers
441 views

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 ...
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2answers
320 views

Are there ways for me to generate $40k per year in perpetuity from $300k? [closed]

Why or why not? Even if I did get $40k once, how unlikely is it to happen again? Some obvious answer are getting a job paying $40k a year (reasonable, but not what I'm asking) and spending the ...
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1answer
128 views

An investor holding an 8% subordinated debenture will receive how much at maturity?

I came across this question in the Wiley Series 7 2020 book: An investor holding an 8% subordinated debenture will receive how much at maturity? a. $1,000 b. $1,080 c. $1,040 d. Depends on the ...
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5answers
2k views

How to separate interest paid on a credit card between personal and business expenses?

My wife has a home business selling clothes. She purchases all her inventory with a credit card but she also uses the card for personal expenses. I understand that on the IRS Schedule C, we can write ...
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2answers
379 views

Do I earn interest when shorting stocks?

Suppose I short 100 shares of a $5 stock. My cash balance will be +$500 due to the short position. Does this $500 earn any interest? I have heard two opposing answers: The $500 earns interest, and I ...
3
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1answer
93 views

Calculating interest and Principal Paid using TI-84

How do I calculate the net quantity of interest on a loan, and the net quantity of the principal on the loan, that I have paid off after a given number of payment periods in the finance app on a TI-84 ...
3
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1answer
83 views

Report interest to HMRC - less than personal savings allowance

[UK] Do I need to report to HMRC if I earn less than £1,000 (personal savings allowance (PSA) basic rate taxpayer) in interest? I also have CGT of less than £12,000.
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2answers
106 views

Compounding Interest

How to calculate compounding interest and maturity value of recurring deposit. e.g. Mr A deposit $ 1000 per month in bank @ 5% p.a. for 5 years. Interest compound quarterly. How t0 calculate maturity ...
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3answers
157 views

Does a bank look unfavorably on someone who pays off their credit card as soon as the introductory period ends?

I have a card for which I had a 0% intro period in which I carried a balance of around $10k, until the intro period ended. Then I paid it off in full so that I have a $0 balance - from $10k. I'm sure ...
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1answer
80 views

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 ...
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2answers
54 views

How to read/decipher the percent % in a bond's interest versus coupon rate question or example

I was studying about bonds, more so accreted/coupon bonds that were discounted. As far as I know and believe to be true is that when a question says: 1) Q. "Mr. Dancer purchases a 5-percent ...
2
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2answers
64 views

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: ...
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3answers
236 views

Using credit cards to pay personal loans

Personal loans issuers won't allow you to use a credit card to pay your loans. Is there a way around this? I have lots of credit card with good amount of remaining credits. And I have very high ...
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1answer
680 views

Daily interest calculation on a 30/360 basis, considering payment occurs before schedule — how-to in Excel?

I'm setting up a payment spreadsheet for a loan just granted, and want to be able to make daily calculations of accrued interest. The debtor has been given a payment schedule with an interest only ...
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1answer
32 views

Term Life Insurance premium vs Interest/Inflation rate

I am thinking of buying a term insurance plan for myself in India and am 28 years old. My premium per year to be paid for a period of 10 years and coverage till 99 years works out to be 111,213 INR. ...
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1answer
195 views

How are banks able to offer high interest rates on foreign currency fixed deposits?

My bank offers foreign currency fixed deposits (FCFD) at a high rate of interest. What's the catch? I know how the bank earns money on domestic currency fixed deposits: by loaning out the money or ...
1
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0answers
49 views

How to calculate proceeds when buying stock with borrowed money?

Suppose I borrow money and use it to buy stock, expecting the stock price to raise short-term. HMRC provides clear instructions on futures and contracts-for-difference (CFDs), but none on custom ...
0
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1answer
107 views

Waiting for a refund that was approved 4 months ago. Company stalling and not getting back to me. Can I charge them interest on the sum they owe me?

As the title says, I booked a ticket with an airline (Condor Air) August, 2019. On December, 2019, I was granted a refund because their parent company went bankrupt and the airline stopped operating ...
5
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4answers
428 views

Doesn't the existence of FDIC incentivize savers to put their savings in the most risky bank?

The riskier something is, the more interest/coupon would be demanded by the lender. In the case of choosing where to put my savings, wouldn't the existence of FDIC incentivize searching for the bank ...
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0answers
79 views

Are owned stocks considered balance?

I want to start investing money into stocks and for that I was comparing depots (broker bank accounts?) I found one that seemed very interesting to me but when I checked their pricing I figured that ...

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