All Questions
Tagged with compound-interest loans
24
questions
1
vote
3
answers
203
views
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 ...
- 151
1
vote
1
answer
87
views
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 ...
- 13
14
votes
3
answers
7k
views
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 ...
- 143
-2
votes
1
answer
114
views
Are there any home-loans that compound every quarter or half-year or annually?
Are there any home-loans that compound every quarter or half-year or annually?
Asking for a friend who keeps bugging my other friend to give them money to buy a house, and the friend doesn't want to ...
- 157
1
vote
2
answers
148
views
Is this a weekly compounding loan amortization schedule?
I am currently having a disagreement with my colleagues regarding whether a loan is compounding or not.
I have linked below an image of a amortization schedule for a 52 week term for a $50,000 loan. ...
1
vote
2
answers
622
views
EU APR calculation, solving for APR
I'm looking for some help with a finance homework. We've been given the FCA calculation for APR:
Source: https://www.handbook.fca.org.uk/publication/handbook/graphic/13449.png
We've also been given a ...
- 11
10
votes
3
answers
3k
views
When computing monthly interest, why do we divide yearly interest by 12, rather than taking the 12th-root?
I've been reading about loans and interest rates, and I've run across a mathematical sticking point. The crux is that, if my loan's outstanding balance is £100,000, I make no payments, and it has an ...
- 201
3
votes
2
answers
304
views
Calculating Annuities With Different Compounding period and Interest Period
Can anyone Help me solve this?
In July 2010, Mike deposits $100 semiannually into an account compounding quarterly at 7% nominal annual interest for three years.
In July 2013, he increases the ...
- 31
1
vote
2
answers
279
views
effective rate loan installment
Why is it that the effective rate is based on compounding and it is also paid only on the remaining loan balance in compounding interest we pay interest on interest?
Can someone explain in to me? what ...
- 11
0
votes
1
answer
217
views
How to compare the APRs of different currencies?
I want to take a loan and I have two options:
Euros APR: 7.2% terms: 10 years
Yuan APR: 9.2% terms: 5 years
I have taken some financial classes so I have a vague idea about it. I know there is an ...
user79408
1
vote
1
answer
102
views
Loan with floating interest [closed]
I have taken a 7 years loan of 450 000 for a car in January 2017 with monthly payment of 7077. The interest rate was 8.25% which means that the total repayment is 593878 after 7 years. As from ...
- 113
1
vote
1
answer
182
views
What is the formula for loan payoff with daily compounded interest and annual payment?
I am trying to get the loan repayment amount for below data :
Loan Amount: $20,412.65
Payments (#): 10
Annual Interest Rate: 2.5%
Loan Date: 07/02/2018
First Payment Due: 09/02/2018 (next payment ...
- 11
1
vote
2
answers
789
views
Compound Interest & Mortgages
Mortgages are compounded 2 times a year in Canada and 12 times a year in the USA. However, I read that mortgages are simple interest and not compound interest because you pay the interest for each ...
- 27
3
votes
2
answers
272
views
How to compare loans of same principal, same interest but with different tenors
I have a scenario where there are 2 loans that can be provided (assuming I am providing the loan). The principal amount is the same, 30,000 in case of both the loans. The interest is also same at 17%. ...
- 1,185
0
votes
4
answers
471
views
Is it possible to borrow money to accrue interest, and then use that interest to pay back the borrower + fees?
Say I want to borrow $225,000.00 to accrue interest on a 1.20% APY account. I promise the lender that I'll pay them a fixed-rate of this interest with agreement that I cannot withdraw nor touch the ...
