4
votes
Accepted
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 ...
- 42.9k
3
votes
Accepted
Calculating stock prices falls and rises
Yes.
And the %'s are weird because you're using a different baseline for each %.
However, they are inverses of each other. Your first trade fell to 40% of purchase price (so: 60% down). You second ...
3
votes
Calculating stock prices falls and rises
Let's simplify this by ignoring the fact that it's a stock.
To find out what percentage X is of Y, divide X by Y and multiply by 100.
123/313*100 is roughly 39.29, so the stock is now worth a bit ...
- 42.9k
3
votes
Accepted
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 ...
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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 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 ...
- 211
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 ...
- 9,677
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 ...
- 9,677
1
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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. ...
- 9,677
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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 ...
- 130k
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 ...
- 136k
1
vote
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 ...
- 9,677
1
vote
Margin calculation on short and long positions combined
In the US, the Reg T margin requirement for a short position in a marginable security is 150% of the sale price. The proceeds from the short sale can be applied to the margin requirement so ...
- 75.7k
1
vote
What is the difference between Capitalization Rate and Return on Assets?
You are correct that the general formula is the same, but they are used in different contexts. Cap Rate is a term that's more specific to real estate and generally applies to specific properties, or ...
- 130k
1
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Why is that we discount all the coupons and par amount of a bond at the same rate?
YTM is just trying to measure the return offered by a bond, taking into account the timings of cash flows. The discount rate that matches the quoted market price (net present value - NPV) of a bond is ...
- 2,451
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