Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [calculation]

A generic tag to understand the calculations in a specific case. Please give out a sample illustration and ask a specific question. Ideally should also be accompanied by specific subject tags like "credit-cards", "savings-account", "index-funds" etc.

533 questions
92
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11 answers

15 year mortgage vs 30 year paid off in 15

I've found similar questions, but they all seem to focus on a preexisting 30 year mortgage and whether or not it makes sense to refinance to a 15. My question is a bit different. I have not yet bought a house but I am trying to decide which…
user24676
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45
votes
9 answers

What is the correct answer for percent change when the start amount is zero dollars $0?

Percent change is a very common calculation in finance. It helps us track growth. The formula is: [(y2 - y1)/y1] x 100 = percent change If the start period is $0 (i.e. no money was made in the first period, so y1 is 0), the formula divides by 0,…
user26460
37
votes
6 answers

Should I pay an extra $100 every month on my mortgage or pay $1200 extra every year at the beginning of the year?

I can pay $1200 extra once a year or $100 every month - which is better? The first one does sound better, but for a 30 year mortgage, is it that significant? Say the mortgage is for $200,000. Thanks.
Anonyms
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31
votes
12 answers

Investor Paradox. How can you calculate how much is a company worth when buying part of it changes the total value?

I have a (probably very simple) question to which I haven't been able to wrap my head around. Say I have a company, and I am told that it is worth 1 USD (100% of the company). My friend, who has 1 USD, asks me if we can join forces. He puts in 1…
Daniel Duque
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27
votes
4 answers

Daily interest calculation combined with monthly compounding: Why do banks do this, and how-to in Excel?

I often see banks advertise (for accounts with fixed yearly interest, let's say 1.5%) – "interested is calculated daily, and compounded monthly". I have 2 questions: Why are they calculating it daily?? If the compounding period is monthly, what is…
Saideira
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24
votes
3 answers

20% APR means only 10% interest? (UK)

I am trying to get better grasp of what the APR figure means, so this example is purely hypothetical. I have entered a loan of £100,000 into an APR calculator on MoneySuperMarket with a 20% APR for the term of exactly one year. I think quite…
kamilk
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19
votes
2 answers

"Out of Pocket Maximum" and health insurance plan terminology & calculation?

I'm trying to understand the terminology on my health plan. I've read numerous websites, which have only confused me more, as they fail to use examples (more than one should be required) for people trying to understand this tricky terminology. I…
Question3CPO
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18
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3 answers

If I were to buy something a day before my due date for my credit card bill, would I be charged interest?

First of all, I am a resident of Canada. I am new to credit cards, so I hope my question makes sense. I've had my card for a few months ago and I've always paid the balance in full by the time the due date rolls around. Just out of curiosity, say…
Rendezvous
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18
votes
1 answer

Why does the TD Bank principal portion of a mortgage payment go up and down in sawtooth? (why is interest payment on annuity in arrears non-monotonic)

I'm trying to understand the amortization schedules of TD mortgages, as produced by the TD Calculator. The monthly payment amounts (on this fixed rate mortgage) are predictable and constant, but the portion of each payment that goes to interest is…
pf_init_js
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16
votes
1 answer

Is the Social Security retirement benefit calculation based on the last 40 quarters, or overall?

Are Social Security payouts based on the last 40 quarters, or overall earnings? That is: If the last 40 quarters of my working career are lower than these past 40 quarters worth, how does this affect Social Security payouts? (If it's around when I…
Stuart Siegler
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15
votes
3 answers

Calculate Future Value with Recurring Deposits

I am familiar with the formula for calculating FV and compound interest of a deposit, but I am wondering if there is a formula that will allow me to calculate how much money I will have after depositing recurring amount of money every month, quarter…
ColorWP
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15
votes
2 answers

How to determine contractor hourly rate and employee salary equivalents?

I am aware of the general differences between being an employee and being an independent contractor. However, I am unable to easily compare the two when it comes to after-tax compensation. Company A: You're a contractor (1099). You get paid…
colithium
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14
votes
10 answers

Should I pay off the credit cards now or do the monthly payments thing?

I have 3 credit cards with a total balance of about $36k. Two of the cards are at 2% and the last one is at 0%. With the current payment structure, I'll be debt free in 25 months. I recently came into some money and combined with my savings I can…
NeedAdvice
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13
votes
5 answers

How to calculate car insurance quote

I'm trying something in related to Auto Insurance and when I went through the State Farm's insurance portal, it asked me for a couple of questions like below. Vehicle ownership Car Age Person's Age Net worth Risk Tolerance Is the person owning a…
user3872094
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13
votes
2 answers

Does the history of credit utilization affect FICO score?

Most people are aware that the debt to credit limit ratio is a vital part of the FICO score. The FICO score is updated every time new information is received by the credit bureaus. However, is it solely the CURRENT ratio that determines the score,…
Brian
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