Questions tagged [compound-interest]
Compound interest is the result of reinvesting interest so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
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How to calculate a mixed interest rate?
I would like to calculate the realized interest rate of my stocks. How can I do that?
Example:
I buy stock A for 1000$ in year 1. After 3 years it is worth 1158$ (+5%/a, 158$ profit)
I buy stock B for ...
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How to calculate the very last payment when repaying a debt?
Suppose I'm repaying a fixed amount every month on a debt such as a credit card debt.
Generally, the very last payment will be less than the others, because the total owed will be less than the fixed ...
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How to evaluate the net profit rate for a pension scheme?
I am not a finance (cse background) guy but have some basic minimal knowledge about the inflation rate & interest rate of a country, and the net profit rate for an investment. As far as I ...
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Confusion with payment calculation for fixed payments on fixed interest loan
I'm trying to understand how to calculate the monthly payments on a fixed interest loan with a given term. I understand this can be done with the PMT excel function.
Whenever I see this explained ...
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Monthly Rate vs Continuously Compounded Rate
A bank offers two alternative interest schedules for a savings account of $100,000 locked in for 3 years. Which alternative should you choose?
(a) a monthly rate of 1%
(b) an annually, continuously ...
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Which mortgage should I pay off first? Same interest rate and mortgage length
tl;dr:
I have two amortized mortgages; one big and one small.
The conditions (interest rate and mortgage length) are exactly the same.
Which should I pay off first?
I have always heard that you ...
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Formula for continuously increasing interest rate
Is there a standardised formula for continuously increasing interest rate of an investment? Given a compound interest formula of A = P(1 + (r/n)^nt), is there a way to combine daily compounding with a ...
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If APY factors compounding (while APR doesn't), shouldn't APY always be higher than APR?
So, from what I understand:
APR: rate advertised to borrowers (without compounding)
APY: rate advertised to lenders (with compounding)
So, for a loan with APR of 6%, that compounds monthly:
APY = (...
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How do we trust power of compounding with mutual fund SIP
When I search for SIP Mutual fund plans, often I see huge money returns in the long run.
But when I research, it's usually mentioned as Power of compounding, that's how they're able to return such a ...
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How frequently is interest compounded when estimating market returns [duplicate]
I'd like to be able to estimate the value of my portfolio over time given annual contributions and an expected return of a certain percentage. I found several simple online interest calculators, but ...
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Calculating CAGR for Ordinary annuity
Basic compounding interest question:
I paid 5000 every month for 12 months and got 67500 in return, what was the annual compounding intereset rate?
I considered formular as follows:
FV = PMT(((1+r)^...
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Need help in calculating interest on daily savings account
Preamble
I would like to open a savings account in one of "Big 5" banks in Canada. Many banks are offering so called "daily savings" accounts.
My calculation
Not to name any names, ...
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What formula has bank used in this situation?
This is the bank fixed deposit's start date and end date with the principal and maturity amounts. The rate is 7% p.a.
Could anyone help with how the bank has calculated this maturity amount?
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How We Decide n in Compound Interest Rate Table When Annual Expenses Increasing After Certain Year?
I don't understand that, in this question's solution for HEPS9, why we take n as 6. And why we use A/G for SP240 and P/G for HEPS9.
Question:
Solution:
Compound Interest Rate Table:
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For mutual funds, does average annual return mean compounded annually or continually or daily?
Vanguard's Portfolio Allocations page (1926-2019) shows 9.21% Average annual return for 70% Equity and 30% Fixed income.
Does this mean 9.21% compounded annually?
GOAL...
If at age full retirement age ...
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