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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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-2
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0answers
76 views

Credit card garninshed for amount much larger than credit limit

I received a credit card from capital one bank for a $200.00 credit limit. They have now garnished my account for $ 7000.00. How can they do that?
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1answer
109 views

When I capitalize amortization table, the present value doesn't equal the sum of PV or the XNPV

How is it that when I capitalize this amortization table, the present value doesn't equal the sum of PV or the XNPV formula of all the future payments? It's not about this amortization specifically, ...
3
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1answer
36 views

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 ...
0
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1answer
87 views

loan and interest rate [closed]

A loan payment of $4200 was due 3 months ago, and another payment of $1800 is due in 6 months from now. When should a single payment of 5800.00 be paid to settle the debt if interest is to be 2%?
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1answer
53 views

Does the concept of Fixed Deposit exist in the U.S. for foreign nationals?

There exists a pretty simple concept of Fixed Deposits in India where some banks pay up to 7% return per annum with a good deal of flexiblity. This is a good option for those who want to have a ...
0
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3answers
195 views

What is a reasonable percent of income used to pay interest on consumer debt?

I was looking at a breakdown of the Ontario government debt and 11% of tax dollars go to pay interest. I am interested to compare with personal finances, would 11% of annual income as interest be ...
4
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1answer
174 views

Write off accrued interest from interest income

My mother purchased a US government bond maturing 2019/04/15. The purchase date was 2018/04/13, so there were 2 interest payments attributed to 2018 (2018/04/15 and 2018/10/15), but the interest ...
0
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2answers
179 views

Does this scheme work for double-earning on stock market growth + high interest savings?

Suppose I have a high-interest savings account that earns 2% interest. Suppose also that the stock market will grow 5% per year. It seems you'd have to choose to divide your money between the two and ...
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3answers
213 views

When to schedule direct debits to maximise interest

Assuming my debit (current) account pays me interest on the funds that are in the account, my intuition is telling me that it makes sense to schedule direct debits for the day before I'm paid. This ...
5
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6answers
2k views

How does paying extra on my mortgage affect my amortization schedule?

I am a first time home buyer and have some spare cash after my home purchase to pay forward quite a bit of money (cash was not available during actual purchase, so, no, I could not have put it towards ...
1
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1answer
109 views

PCP opening balance seems very high

I’ve just received my first statement from my first PCP car agreement and I’m very confused. My credit amount was £20,500 ish and my statement shows that my opening balance 29 days later (when my ...
0
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1answer
63 views

How to benefit from different forward rates

This is an exam question that I cannot answer using my textbook so I came to this site for help: Assume that I can buy a 2, 2 forward rate of 11% at the stock market, that is in two years I can ...
0
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3answers
161 views

How do credit card companies decide the amount of principal to charge interest on the revolving account?

EDIT: This question is not a duplicate of When to pay a credit card in order to avoid fees/penalties/interest? as that question asks how to avoid interest, as to where I am asking which amount of ...
0
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2answers
152 views

Excel formula for compound interest?

I would like to make an excel formula according to this situation: Person A / Person B Person A invests 1000$ every year from 18 to 28, and then holds it until age 65. It compounds every year with 8%...
5
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1answer
332 views

Calculate interest on mortgage

I have been trying to arrive at the same interest figures that my bank charged me on my mortgage, however I am off by a few dollars so I must not be using the correct formula. I have a 30 year ...
0
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0answers
69 views

Why would anyone buy a bond with a negative interest yield? [duplicate]

According to this article I read from MSN today, markets around the world are trading bonds at a negative interest yield. This to me seems completely insane - bonds standing over time should ...
0
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1answer
88 views

Monthly Compound Interest calculation

I am terrible at finance and math so this really hurts my brain but I want to work out the compounding monthly interest for an initial amount over x days. For example I have $1500 over 95 days at 10%....
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2answers
1k views

Why is there so much interest on home loans?

Search around the internet for current mortgage rates and play with some of the amortization calculators. You'll see that at the end of the payment schedule you will be paying almost an equal amount ...
2
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2answers
75 views

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 ...
2
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3answers
131 views

Consequences of jumping from one 0% interest credit card to the next?

What are the negative consequences (if any) of moving from one 0% introductory rate credit card to the next, every 12-15 months (whatever the rate period happens to be). This is for someone with great ...
0
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4answers
225 views

How to calculate total interest payments for debt with two interest rates?

If a debt accrues interest at an annual rate of 8% on the principal balance up to $1,500, and it accrues interest at an annual rate of 18% on the portion of the principal balance above $1,500, and if ...
0
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1answer
106 views

How is Barclays Everyday Saver interest rate calculated

I searched online and they said it's 0.25%-0.30% per year. But since my balance is ever-changing, how do they really calculate the interest? Do they just snapshot your balance on a certain day of a ...
2
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4answers
279 views

Do extra mortgage payments typically go directly towards principal?

I have a 30 year mortgage and I'd like to make extra payments each month to speed up the amortization schedule. I thought this would be better than taking out a 15 year mortgage as it gives me some ...
2
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2answers
183 views

Student loans w/ employer contribution payoff strategy

I have $17k in student loans (4 of them, all Stafford less than 4.5%). My monthly minimum payment is under $200, and my employer contributes exactly $200 on my loans each month (regardless of minimum ...
3
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1answer
73 views

Can my student loan interest apply for an above-the-line deduction when I'm on my grace period?

I was reading this article on 2019 tax deductions: https://www.fool.com/taxes/2019/01/13/your-2019-guide-to-tax-deductions.aspx I recently graduated college in May and started work in July 1st. I ...
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3answers
114 views

Hypothetical Question About Mortgage and Yield [closed]

Making These Assumptions: I have $1M, I want to buy a house which costs $1.5M. I want to have a mortgage of $500K. The interest rate on my mortgage is 2.5% annually. Assuming I rent the house and ...
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6answers
391 views

Advice on loan to friend

I am writing up a legal document (USA, Michigan) for loaning 7k to a friend with 10% APR with a term length of 5 years. (known him 5 years, he has paid back many smaller loans before). We'll both ...
0
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2answers
237 views

Why do so many people calculate an annual average return of 10% in stocks when multiple banks offer funds that yield only 3-5% or lower?

In recent months, multiple banks and financial advisers have asked me if I would be interested in investing in stocks because I have some spare money. They showed me different funds that they thought ...
3
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4answers
841 views

How can a 'saver' maintain or increase wealth in low interest rate economy?

If low interest rates disadvantage 'savers' what are they supposed to do if they are not inclined to buy and spend? Where should you put your money (instead of it stagnating in low interest rate ...
2
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2answers
64 views

Profitability of Holding a Loan from Issue to Maturity

The loans that I invest in pay a fixed amount of money per month. A portion of it is principal and another portion of it is interest. As the loan matures, a smaller proportion of each payment is ...
8
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3answers
26k views

Can I negotiate to have a credit card interest fee waived?

I recently missed a credit card payment by one day (my first one ever in my history of credit starting from over 10 years ago), and I called the credit card company to have the late fee waived. I ...
0
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1answer
38 views

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 ...
0
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2answers
156 views

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
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1answer
190 views

Negative rates on government bonds

Take the german 10J-Bundesanleihe for example, as far as I know the rates for it went negative recently. Is there any incentive for private investors / or institutional ones to invest now into this ...
0
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1answer
1k views

Exact meaning of no prepayment penalty in installment loan

What exactly does the phrase "no prepayment penalty" mean? To illustrate, let's consider the following example: I borrow an installment loan of $1000 and it says that I need to pay $300 monthly for ...
6
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1answer
214 views

Should I pay taxes on additional money I received due to exchange rate?

Let's take the below example - I send $1000 to India NRE account when exchange rate is $1 = Rs. 70 Money in NRE account = $1000 x 70 = Rs. 70000 I keep that money in NRE account at 7% interest Rs. ...
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2answers
498 views

Will banks allow one spouse to get an auto loan to buy a car from the other spouse

My husband was in an accident with our family’s van so we have to buy a new one. The insurance is paying off our existing note in full. We have found a pre-owned van that we want to purchase as a ...
0
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1answer
65 views

Tax system on savings account in India

I would like to know if the money in the bank is taxable. Let's say I have deposited some x amount in my savings account and the yearly interest is y amount. I know that this y amount is taxable, but ...
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1answer
92 views

When is margin interest charged?

Let's say that I have a margin account at a major broker like TD Ameritrade or Interactive Brokers. I am trying to calculate what my cost would be to use margin and I would also like to know when it ...
1
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1answer
689 views

How to understand the calculation of interest for credit cards?

From Wikipedia The general calculation formula most financial institutions use to determine the amount of interest to be charged is APR/100 x ADB/365 x number of days revolved. Take the annual ...
4
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2answers
157 views

Help on calculating credit card interest

Below is a summary of my current statement Apr 21 2019 - May 2019: The APR is 25.24% I had a promotional 0% APR till Apr 20. This is it google drive link I have tried my best to calculate the ...
4
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2answers
2k views

How to recalculate an amortization table after making a large payment?

I have an auto loan I wish to apply a very large amount to. I have a amortization table that shows me details for each payment I make. Here's where it gets complicated... My lender does not allow ...
4
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4answers
522 views

If Turkey doesn't go bankrupt, is there any chance they won't pay bonds profits?

Suppose I buy 5000$ worth of Turkish treasury bonds today and the yearly interest rate for 1Y bonds is roughly 25%. Assuming Turkey doesn't go bankrupt in the next year, is there any chance I won't ...
3
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1answer
3k views

How do brokerage firms make money?

I know that this question has been hinted at on other open question sites like Quora but I have yet to find anyone who lists all of the points in one place. I understand that firms make money by: ...
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2answers
325 views

Excel table to compute interest on savings account that is compounded daily but paid monthly?

I have an excel sheet that represents a real world savings account which interest is compounded daily but paid out monthly. It looks like: Example Table For clarity, I will call each row in the "...
2
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2answers
274 views

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 ...
17
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3answers
7k views

Frequency of investments to maximise returns (and minimise fees)

If I have a certain amount of money to invest regularly, how do I calculate the amount to let accumulate in my bank before I make that investment, assuming there is a fee associated with each ...
1
vote
1answer
33 views

Schedule C: Determine credit card interests expenses, line 16

How does one calculate credit card interest for schedule C, line 16? My wife has a home business and uses a credit card for the business. My understanding is that because we are using the cash ...
0
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1answer
64 views

Multiple day ACH transfer - is there a day when neither bank is paying interest?

If I transfer money from my account at bank A to my account at bank B, using a free multi-day ACH transfer, is it common that I would not be paid daily interest for the balance while the transfer ...
1
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1answer
125 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. ...