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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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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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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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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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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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 I calculate monthly compound interest with additional monthly deposits in Google Sheets?
I'm trying to figure out how to write a formula and/or use a function to calculate the following in Google Sheets.
John deposits $1,000.00 into a savings account on Dec 31st. John also deposits $100 ...
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How are compound interest factor tables calculated?
In my economics class, our textbook provides these massive tables for looking up these compound interest factors to put in worth equations. They look something like this:
There has to be some formula ...
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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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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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Future value of an annuity with variable compounding time?
I haven't found any information on this so here goes: Is there any general formula for calculating future value of an annuity (recurring deposit) when the interval of interest compounding is variable? ...
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