7 votes

Who gets fractional sales tax?

The tax is usually calculated per receipt, and rounded to the nearest cent. The business remits all the taxes collected. Rounding up and down averages out over multiple purchases, so in the long term ...
littleadv's user avatar
  • 174k
5 votes
Accepted

Who gets fractional sales tax?

In my experience, back when I had to look up the sales tax at the pizza place I worked at, the tax was rounded up. Back then the sales tax was 5% so it was possible to also calculate it in your head. ...
mhoran_psprep's user avatar
4 votes
Accepted

How to calculate monthly payment of a loan

The difference is how you interpret "8% compounded annually" In reality, loan rates are quoted as "annual", meaning the actual monthly interest rate is n/12 (r/n in your formula). ...
D Stanley's user avatar
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4 votes
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For this I-bond calculation there's a tiny adjustment to the rate (fixed rate x semiannual inflation rate) it barely changes the rate.Why is it there?

The last term of the formula makes up for the loss of value of the fixed rate interest due to inflation. The thread you linked to actually already contained that information, but probably not clear ...
Solarflare's user avatar
  • 2,648
4 votes
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What is the correct Formula for calculating fund growth with fees

In simplest terms, if the fee is a percentage, you can subtract it directly from the percentage yield. That is, a fund with a 1% fee and 8% yield will be no better for you as an investor than a fund ...
keshlam's user avatar
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3 votes

What is the correct Formula for calculating fund growth with fees

The results in the article quoted can be calculated as follows. With s = future value a = periodic deposit n = number of periods r = periodic rate Setting the future value s equal to the sum of the ...
Chris Degnen's user avatar
  • 9,797
3 votes

For this I-bond calculation there's a tiny adjustment to the rate (fixed rate x semiannual inflation rate) it barely changes the rate.Why is it there?

The composite rate is reported as an annual rate, but the interest is actually compounded semiannually. Thus at the end of the first half of the year, you get to collect interest on the amount at the ...
Brian Borchers's user avatar
2 votes
Accepted

Money-Weighted Returns calculation clarification

The calculation is bringing all the cash flows to present value to equate them. For example, start the year with $800 deposited, a further deposit of $150 at the end of Q1, a withdrawal of $300 at the ...
Chris Degnen's user avatar
  • 9,797
2 votes
Accepted

How to calculate portfolio performance without tracking each individual transaction

To find the annualised return, given the deposits and valuations, calculate the money-weighted return (mwr) for each span between valuations, then compound them for a time-weighted return. Just ...
Chris Degnen's user avatar
  • 9,797
2 votes

How to calculate monthly payment of a loan

As D Stanley comments, the problem is with the rate. "8% compounded annually" is a 'nominal' rate, as identified by the statement of a compounding period. A 'nominal rate compounded annually'...
Chris Degnen's user avatar
  • 9,797
1 vote

How to Calculate Future Inflation-Adjusted Investment Balance with Monthly Contributions, Annual Interest, and Fees

The recurrence equation for the monthly balance is a[n + 1] = (a[n] + p) (1 + r) where a[0] = s ∴ a[n] = (-p - p r + p (1 + r)^n + p r (1 + r)^n + r (1 + r)^n s)/r where p is monthly ...
Chris Degnen's user avatar
  • 9,797
1 vote

Money-Weighted Returns calculation clarification

Money-weighted return is essentailly the IRR, which answers the question "at what constant interest rate could I borrow outflows/invest inflows and end up with the same amount at the end of the ...
D Stanley's user avatar
  • 135k
1 vote
Accepted

How can I calculate the time weghted return?

For time-weighted return, you need the value at the time of each cashflow (purchase/sale). You can start with the value either before or after the cashflow, since you can add or subtract the cashflow ...
D Stanley's user avatar
  • 135k
1 vote

Price for a bond that was issued in the past?

The prices are never denoted for a fixed period. It's simply what the market trades the bond at at the moment. It seems you don't look at any specific bonds but computed yield curves. Trying to price ...
AKdemy's user avatar
  • 2,774
1 vote

How to calculate PV of annuities for a home loan

There are a few things to consider even before comparing the rental to alternative investments: Can you cash-flow the mortgage payments, insurance, and taxes if the house goes unrented for 6 months (...
D Stanley's user avatar
  • 135k
1 vote

How to calculate PV of annuities for a home loan

For the real estate scenario: Calculate net cash flow by subtracting mortgage payments from rental income monthly. When the mortgage payment exceeds rental income, use your monthly income to cover the ...
Parvez's user avatar
  • 347
1 vote

How to solve amortization schedule where 10% of the interest is paid back on 4th payment

Here is a quick solution done in Mathematica, using its computer algebra. Since the first payment is in October I presume the loan commences September, so the first month gains 30 days interest. ...
Chris Degnen's user avatar
  • 9,797
1 vote

Sales tax calculation algorithm

I assume that each tax (State, County, City, Special) has to be applied to each line item (or possible each item if the qty > 1), then summed and rounded on a per tax basis. I am not a sales tax ...
mhoran_psprep's user avatar

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