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
2k views

How do interest rates work?

My question is very simple. I am considering a CD for my money, but I don't know a whole lot of the financial math that goes into that kind of stuff. My question is about interests rates. Do CD's ...
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1answer
1k views

Is it to my advantage to refinance with an LPMI option (Lender-Paid Mortgage Insurance)?

My fiance and I bought a house in April 2013 using a FHA loan, 30-year fixed. We only had to put down 3.5% so of course a good bit of our monthly payment is PMI. I got a call today from the same ...
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2answers
6k views

Monthly/Annual Payments Calculation with percentage increase to equal exact dollar amount over exact specified period

I'm not sure if this is the right place to ask this kind of a question, but here it goes. I have the following information: A = Total amount needed B = Number of periods (monthly, 12 payments of ...
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6answers
698 views

Entering the stock market in a poor economy

I'm sitting on a reasonable pile of cash, earning negligible interest in a bank savings account. After determining that I can live without this money for 5-10 years, I decided it would be best put ...
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2answers
944 views

How does compounding of annual interest work?

I have tried reading up on it, but I just find it confusing. Apparently, if you started investing $150/month at a 15% annual return and kept reinvesting the profits, here is what you would have ...
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2answers
869 views

Why are mortgage interest and taxes considered tax deductible?

I have trouble understanding the rationale behind why certain things are tax deductible while other things are not. For example, I understand that RRSP contributions are tax deductible because I am ...
5
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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 ...
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1answer
4k views

How to calculate the proportion interest/principal of this fortnightly (bi-weekly) loan payment?

You would need to borrow $660,000 and your fortnightly payments would be: Reducing loan $2,299.61 given 5.75 variable interest rate How much of the $2300 fortnightly paid is interest, and how much ...
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1answer
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Help with calculation of interest on a security deposit on a rented house?

I know you answered a similar question on another post but I am in dire need of help. I was wondering if you could help me out with my security deposit calculations? We paid $1795 for our deposit in ...
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1answer
436 views

How do I calculate the interest on my deposits to my landlord?

I was renting from this company called harbor house builders. I started renting from them in 2009 and at that time I was renting an apartment at 650 a month so I put 650 for rent and 650 for deposit. ...
5
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2answers
180 views

Does there exist a kind of loan where no part of principal is paid, while interest is still paid?

I know that when debt is being re-paid, one pays interests along with repayment of some parts of debt principal. However, I am wondering a case where no part of debt principal is re-paid while ...
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1answer
78 views

U.S. Bonds Taxed Interest and Current Value

Series EE Bond just matured and I cashed it in. The current value that I received in cash was only a little more than the original face value. However, the interest I am paying taxes on is half the ...
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2answers
2k views

Interest on security deposits paid to landlords, in Michigan?

Does the state of Michigan require landlords to put security deposits in interest bearing financial institutions?
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2answers
2k views

Can the interest on a cash out refinance for a rental property be claimed as an expense?

I currently have my home all paid off. I am thinking about purchasing another property as my primary home, and renting out my paid off current home. My question is should I: Get a regular loan for ...
2
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1answer
493 views

How to figure out interest received from 'cash and cash equivalents' in a balance sheet?

Looking at APPL's balance sheet, I can see that they have a few million as cash and cash equivalents. I want to know more about cash and cash equivalents. I understand that cash and cash ...
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1answer
75 views

Which state do saving interests come from?

Suppose you have a banking account opened in state X and you live in state Y. If you earn interests with the account opened in state X, can that be considered income from state X, or should it be ...
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2answers
216 views

Please explain short interest; specifically, why is it called “interest”?

I understand that short interest is the number of shares that is currently short sold. A high short interest indicates that the share price is expected to fall. All good, but what is the word '...
2
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2answers
2k views

What is the effective interest rate on a credit card that offers 0% interest with a 4% balance transfer fee?

I'm about to do a balance transfer that has a fee of 4%. It gives me 0% interest for 14 months. Is it just a straight calculation of 4% for the year or is there another calculation that I need to ...
2
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1answer
595 views

How can Mastercard's interest rate be more in Norway than in Finland?

I select Mastercard because it is easy to compare credits cards between the following countries. I am looking the prices of Mastercard in Finland, Estonia and Norway. All banks have the same amount ...
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3answers
2k views

Quick formula for calculating total interest in my head

Is there a rough, quick and dirty, formula that I can do in my head for calculating the total interest on a loan? Something like: TotalInterest = Principal * (Yearly Interest% * Term In Years / 2); ...
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2answers
6k views

Retirement formula for annual compound interest with changing principal

I'm trying to calculate how much money I'd have to put away each month for the next 20 years, to be able to withdraw 50,000 a year for 20 years after that (a retirement calculation). The issue that's ...
4
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1answer
1k views

How to determine the interest rate?

I'm really not good at math. So please forgive me for this noob question that I have.. Just trying to learn basic percentage calculation with money lending.. Here's an example of how the APR works. ...
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1answer
269 views

How to read interest/principal payoff table

I have this data (modified dates) in my transaction history: (APR=.99%) I have made 4 payments till date. 4th Paid on: 06/25/2001 $1000.00 Principal $1000.00 //Paid $...
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2answers
2k views

How much interest will I pay on my credit card?

I'm about to move to the US and I'm wondering: say I always keep an active balance and never overdraw/accumulate debt, will I still pay interest on my monthly expenses paid via credit card? For ...
2
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1answer
200 views

How to calculate outstanding Graduate Plus Loan balance currently in deferment?

Can someone tell me what I'm doing wrong here? If I have a $56,500 loan and the interest rate is 7.9% how much will I owe after 8 months? I thought this would be fairly simple. I would compound ...
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2answers
159 views

How can I calculate interest portion of income when selling a stock?

For religious reasons, I want to account the income from interest separately from any other income. I know that most companies today have some liquid assets, which accrue interest. But when I sell a ...
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3answers
5k views

Is interest of credit cards caculated based on the amount unpaid within the grace period?

From Wikipedia if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid,...
10
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2answers
754 views

How does Paying credit card in full VS paying with interest will affect your credit score?

What is the effect of paying credit card in full or with interest on your credit score?
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4answers
4k views

Possible to use balance transfers to avoid interest with major credit cards?

I recently paid off a balance transfer and then this thought occurred to me. Let's say you have $3000 of debt outstanding on a credit card. The goal is not to pay interest while you work to save the $...
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3answers
266 views

“Interest Earned” means my money or my bank's money?

Hi all I'm almost graduating into the working world and even if I hate it I'd have to start learning credit cards and stuff. There is a transaction in my iBanking that shows "Interest Earned $amount-...
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3answers
2k views

Clear example of credit card balance 55 days interest-free “trick”?

I read on this website the following: Maximize Your Statement Cycle The smartest way to use your credit card is to be sure to pay your balances in full and on time. However, you can ...
2
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1answer
222 views

Calculate how much interest I will pay given a creditcard balance and a monthly payment?

Assuming I have a $1000 balance on a credit card with a 12% APR how can I calculate my total interest payments if I pay $300 a month? All the online calculators I've found are geared toward showing ...
6
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1answer
307 views

IRS overpayment interest - Is it interest on what I pay in taxes?

I have seen that the IRS pays overpayment interest rates that seem to range from 3-8%. When I see these rates are they related to what I pay in taxes? I.e. if I vastly overpay my taxes does this mean ...
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3answers
285 views

Are there any catches with interest from banks? Is this interest “too good to be true”?

Here's the long put short: I'll have £100,000 in my possession soon (inherited). I'm 17 so I have a NatWest Adapt account (teenager bank account) with an interest of 1.09%. Now, if I was to put the £...
5
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3answers
2k views

Scottrade cash interest?

I'm looking into opening a Scottrade account in the future, and was wondering if they pay interest on cash in your brokerage account? Are the rates published anywhere?
4
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1answer
397 views

Taxation difference between income from credit union (CU) shares versus bank deposits (e.g. CDs)?

This question is a follow-up to Difference between a (credit union) "share certificate" and a (bank) CD? What is the difference in taxation on "interest" payments versus "dividend" ...
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2answers
830 views

Paying off loans early, or is there some way to reduce extortionate interest charges?

I bought a car about 2 years ago on finance. The car was priced at £11k and I was very quick to jump at the chance rather than thinking. Over the 5 year period I'm paying over £18k in total, thats £...
2
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2answers
790 views

Do I still get interest if I take money out of a savings account that pays annual interest?

This is probably a silly question, so apologies. I have a savings account started a few months ago. If I take the money out now will I still get the interest on it from the past few months at the ...
8
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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-...
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6answers
6k views

Is there a law or regulation that governs the maximum allowable interest amount that can be charged on credit cards or in agreements where credit is extended?

When I worked in the corporate world, I remember dealing with a company from the U.K. who cited a U.K. regulation on maximum interest/finance charges that necessitated a change in their contract. ...
3
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1answer
192 views

US Taxation on interest on savings in UK

I have an offer from my employer to move to New York. The move is "permanent" and as such I will become a resident alien within the US. I do not wish to transfer my entire savings over to the US as I ...
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2answers
2k views

Should I pay the interest or the principal on my second mortgage?

We have a second mortgage on our home from 10/08. It was designed to be deferred for five years, so we're right in the middle. After the deferral, our monthly payment will be $413.74 for 25 years. ...
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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 ...
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7answers
906 views

Will be debt Free in 3 years — What order should i pay off my cards?

I have budgeted to the point where i can close all credit cards i have in close to three years from now. My question is, should I simply pay 1/3 to each card (will be over minimum payment on all) OR ...
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2answers
956 views

Has anyone found U.S. Savings Bonds to be effective investing?

Since I was a small child, my grandparents have given all of their grandchildren savings bonds on our birthdays. I'm not sure if it makes a difference, but they are always "EE" series. I had to use ...
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2answers
344 views

How and where can I deposit money to generate future payments / income?

My Question. What do I deposit now, today, to pay myself $300.00 per week,i.e. $15,600.00 annually at 5% interest for 10 years? What kind of or type of financial institution do I deposit the in? A few ...

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