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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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0
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1answer
170 views

Does Gold Pay Interest In Negative Rates?

From my SO the other night: Gold pays interest when there's negative rates. If someone holds gold, they have to store it in a manner that will cost (money or time) and if someone holds gold in a ...
1
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1answer
645 views

How do I prevent my credit card interest from capitalizing?

I have a fairly standard point-rewards Visa credit card - I want to keep the interest on it from capitalizing, so whenever I make a purchase of over $50, or feel like I've made a large number of ...
4
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4answers
401 views

What to do with this cash- pay off ONE card, or pay down a few?

I've got a $5k payment coming through with about $12k in CC debt, over 4 cards. 1 card is at $3000 (total line is $4k), 14.8% interest rate, another at $3450(total line is 4.5k), 19.3% interest rate, ...
1
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2answers
73 views

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 ...
0
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3answers
486 views

What type of an account to store emergency fund? [duplicate]

I'm working on building up my emergency fund. I put the money into an Ally online savings account yielding 1% interest. Would it be wise to put the money somewhere else that gives a higher rate of ...
0
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1answer
58 views

Interest on American dollars in Australian bank account

I have American dollars in an Australian bank account, which doesn't accrue any interest. Is there a way of getting interest on it?
2
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1answer
125 views

How to handle fee for a balance transfer?

To save some money on interest, last week I transferred a balance of $17,500 from my student loan account to my credit card for 0% APR for 18 months and a 2% transfer fee. The transfer fee ($350) ...
3
votes
1answer
116 views

How does payment of interest work when an account has a maximum balance?

I am considering opening a new savings account with the building society with which I have my current account. (For completeness, I am in the UK, the building society is Nationwide, and the savings ...
8
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5answers
4k views

Paying off a loan with a loan to get a better interest rate

I've never had credit or a loan till recently when I bought a new car. This has recently given me a much better credit rating after having the loan for a year with 5 years to go and 2 credit cards ...
4
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3answers
6k views

Loan repayment calculation and monthly compounding interest problem

I need to write a mock up application that returns a quote to potential borrowers. The specification says that "The monthly and total repayment should use monthly compounding interest". Program ...
0
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2answers
275 views

What is the best way to increase the earned money staying in US for an NRI?

Im living in US from last 1 year due to work assignment and will be here for another 3-4 years. What is the best way to earn interest on earned money? Shall I send all earned money to India account ...
-1
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1answer
151 views

Borrowing money for investment

What do you consider the best way to: Borrow money from private investors against a fixed interest rate Use it to trade, yielding a higher return than the interest rate Pay off the investors with ...
9
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3answers
2k views

“Simple interest rate of 0.10%” corresponds to “APY of 2.54%-5.00%”… how?

This checking account says Balances above $5,000 earn a simple interest rate of 0.10%, with a corresponding APY of 2.54%-5.00% APY. I don't understand how a simple interest rate that is a fixed ...
32
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13answers
9k views

Do I pay a zero % loan before another to clear both loans faster?

I have $11,000 to put toward one of my three loans. I think I should pay off the 0% car loan and then in two months it will be zero and I can apply that $635 to the 2.5 % car loan and pay it down ...
1
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2answers
64 views

How to safely earn interest on business profits (UK) [closed]

I have a good sized amount of money in a UK (Barclays) business bank account earning exactly zero interest. I'd be happy even to earn 1% interest on that money so long as it was totally safe, but I ...
4
votes
1answer
221 views

Is it better to hold cash in a mortgage offest or term deposit account long term?

I am refinancing a variable rate mortgage (current rates are low and expected to fall further in the next 12 months - currently 4.25%). I have a cash sum equivalent to about 20% of the full loan ...
0
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1answer
148 views

Handling loan on flat to rent

I intend to buy 2 room flat and rent it. Flat costs 240k and I have 70k in cash. I expect to get paid 2k per month from renting flat (1k per room). Bank requires my minimal contribution of 10% of flat ...
1
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2answers
136 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 = ...
1
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2answers
161 views

How to calculate interest gained by paying off credit card right before the due date and not earlier?

By not paying off the credit card statement amount right after it is generated but closer to the due date, the same funds can be in a savings account generating interest. I'd like to know precisely ...
2
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2answers
32k views

Why does the principal/interest applied to my balance fluctuate in spite of making payments on-time?

In my first payment on 6/03/2011, the principal applied to my balance was $261.11 and the interest was $221.64. As I kept making the payment on-time, the principal applied to my balance kept ...
0
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4answers
1k views

Is 6% too high to trade stocks on margin?

Lets assume I understand the risk of trading on margin and that I can lose the money. My question is if 6% is too high? I do have dividend paying stocks that could almost cover the monthly interest ...
4
votes
1answer
610 views

Inflation adjusted total formula for cost of mortgage

True cost of a mortgage when considering inflation has an answer by a Chris Degnen with the relevant formula(s): adjusted = (p - (1 + inf)^-n*p)/inf; pv = Σ p2 (1 + r2)^-k for k = 1 to n ∴ pv = (p2 ...
3
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1answer
149 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 ...
19
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5answers
3k views

Should I buy a house because Mortgage rates are low

Interest rates are pretty low right now and a few of my friends are rushing to buy a house(even though the actual property prices are pretty high.) I was of an opinion that mortgage rates being low is ...
-1
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1answer
682 views

Does a one time additional payment reduce the interest paid on a Prosper or Lending club personal loan

I have a loan with Lending Club with a certain interest rate. So every month I pay the principal as well as about $200 in interest. Assuming the loan balance left is $20000 and the interest rate is 7%,...
6
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1answer
4k views

Cash Advance causes recurring interest fee after paid in full

In January I made a cash advance of $110 with my credit card. In Februaury, I paid off January's balance (+$10 cash advance fee +$1.82 cash advance interest) in full by the statement due date. This ...
4
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3answers
2k views

What are the pros and cons of buying an item on installments with zero percent interest?

For example, currently Verizon is advertising an iPhone 6s for either $649.99 or 24 monthly payments of $27.08, i.e., $649.92, which is essentially equal and there is no interest. The obvious ...
-1
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1answer
225 views

Proper etiquette for loans from friends [closed]

I'm not sure that there is a universally accepted "proper etiquette" when it comes to repaying a loan from a friend, but I feel it necessary to be absolutely fair in respect of the time value of money;...
5
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2answers
19k views

What does a 30/360 day count convention mean?

I've been trying to understand day count conventions, but the Wikipedia article is confusing. It was my understanding that interest is usually compounded daily - I don't quite understand how it fits ...
4
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2answers
2k views

Does paying more frequently on a simple interest auto loan save me money?

My Auto loan is calculated by "simple interest". Would paying weekly save me money? If so, wouldn't paying daily save me even more money?
0
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2answers
609 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? ...
-4
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5answers
952 views

Mortgage vs. Loan?

I understand the math behind how banks calculate the interest to principal ratio throughout the amortization period. I want to know why banks want you to pay as much interest as possible first? In a ...
1
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1answer
407 views

How do credit card companies make money from cardholders who do not carry a balance? [duplicate]

How do credit card companies make money from cardholders who do not carry a balance? It seems credit card companies are eager to offer their services to borrowers even if they have a tendency to pay ...
1
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1answer
23k views

India Income Tax: Need to Pay Tax on Savings Account Interest for FY 2012-13 Or Not?

As per Indian Income Tax rules and regulations, for the Savings Account Interest accrued during the period of April 2012 to March 2013, do I need to pay any tax if it is less than Rs.10000? Or is it ...
2
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2answers
491 views

Paying off a mortgage early

I am thinking about buying a property with a mortgage in the UK, living in it for 3 years, and then selling it. This is because at that point, I will probably be moving out of the city I am currently ...
1
vote
2answers
475 views

How can I determine the interest rate, given increasing monthly deposits and a final amount?

I need help to determine the interest rate of this investment. The initial value is nothing The monthly investment is R500. It stays R500 a month until the year is over and increases by R50. Thus, ...
2
votes
1answer
4k views

Do nonresidents of Canada have to pay income tax on interest income earned in Canada?

I am a Canadian citizen, but nonresident of Canada for tax purposes. I currently live in the US. I have a savings account at a Canadian bank in Canada and have earned a little bit of interest, around ...
8
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5answers
768 views

Formula that predicts whether one is better off investing or paying down debt

This is more of a statistics/probability question but the implications for personal finance are obvious. Let's say you have extra cash (assume tax-advantaged space is already maxed out) and are ...
1
vote
1answer
226 views

How does a variable interest rate loan work?

I took out a $100,000 loan on my house on a variable rate loan at 4.5% for 30 years. For example, see this calculator. Assuming the interest rate stays the same, the final cost will be $145,000. In ...
4
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2answers
353 views

Can credit card company charge interest even if all the bills are paid in full by due date?

I recently started using a credit card. I get the credit card statement by 22nd of every month, and the payment is due by the 1st of next month. The full amount is automatically debited from my ...
11
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4answers
28k views

Difference between dividend and interest

A representative at my federal credit union used dividend and interest exchangeably in our communication, claiming the two were the same concept in their financial institution, which doesn't sell ...
0
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1answer
85 views

Lowest Interest Options for Short-Term Loan

I am looking for a short-term loan in the amount of $15k to buy some household items. I will be able to return the money in full by 3 months I have a credit score of 760+. Currently, I am seeing ...
-1
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3answers
328 views

What return are you getting on your money from paying down a mortgage on a rental property?

If you bought a $200,000 rental home with 20% down, what is the return on investment you're earning over the full 30 year period from paying down the loan using the rental income? We will assume the ...
1
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0answers
52 views

Add-On CD Formula

I'm starting to learn a lot about finance/investing on my own but I'm struggling with the calculations behind Add-On CDs. I opened an 14-Month Add-On CD with a $1000 deposit with a monthly $30 add-on ...
1
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3answers
137 views

Free brokerage vs paid - pros and cons

I currently have 30 free trades per month with a brokerage firm due to my account balances at their banking arm. I will typically trade a few shares of various companies in very small dollar amounts. ...
5
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1answer
196 views

Savings or mortgage overpayment

This question might be too simple, but I just want to make sure I am not missing a crucial detail. I currently have a mortgage which allows free overpayments (up to 10% of the mortgage value each ...
0
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1answer
315 views

How can I get more interest than the 2.8% my bank is offering me on my $60,000 AUD? [closed]

I have recently been given a $60,000 AUD for the deposit on a house. I have since discovered that I am not earning enough to get a good enough mortgate. I think if I wait a couple of years I'll be ...
2
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2answers
2k views

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 ...
2
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1answer
4k views

Should I make partial pre-payments on an actuarial loan?

I discovered today that a loan I took out for home improvements doesn't use simple interest. I'm pretty frustrated with myself for not realizing this before I signed for it. Regardless, I'm trying ...
4
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2answers
5k views

Can you subtract credits/returns/refunds from statement balance?

Most credit card companies in the US do not charge any interest on any purchases if you pay at least the statement balance every month. E.g. you effectively get between 25 and 30+25 days of interest ...