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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Why do people save so much?
When I am old and retired (70 years +), I don't plan to spend a lot of money. I'll be living in my own house that is already paid off at that point, so no rent or mortgage payments. Since I don't need ...
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Compound interest rate
Given annual interest rate r_ann and n compounds per year, why do we use the formula
(1+r_ann/n)^tn
rather than (1+r)^tn given r = (1+r_ann)^(1/n) - 1.
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Future value of a compound-interest savings account when contributions are inflation linked
I've got a savings objective to achieve in 6 years and I'm trying to work out the percentage of salary I need to put towards it to achieve it.
I am trying to work out how to calculate the future ...
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Compound Interest Calculation
In __________ years a sum will double at 5% per annum compound interest.
Options given are:
a. 15 years 3 months
b. 14 years 2 months
c. 14 years 3 months
d. 15 years 2 months
The way to solve ...
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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 ...
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How to calculate the future expenditure of education :
Suppose the following:
if a child's age is 2 years today and
he/she will go to college at the age of 15 years
for 2 years(duration of education) and
for which Cost incurred P.A. as on today (Rs.) ...
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What are the alternatives to compound interest for a Muslim?
I have read the importance of saving early and the power of compound interest many many times. However I am a Muslim and cannot participate in anything involving interest. I also learned that keeping ...
user4884
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How do I calculate monthly compound interest in Google Sheets?
I have a financial spreadsheet with a column of all my deposits into my savings account. The leftmost column lists the dates of the deposits. Now, let's say my savings balance is $100.00 and my ...
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Continuous compounding in practice
A common explanation for the mathematical constant e (2.71828...) is that it is the factor by which an investment would grow at 100% interest rate over a period if it is continuously compounded.
In ...
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Does the growth of home value benefit from compound interest?
I read Investopia's definition and my take away is that compound interest applies to an investment that yields some return on a regular basis and that yield is reinvested in that instrument. If I have ...
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Loan payoff benefit versus raise. Break-even point needed
I have student loans that are under a program that pays off any remaining balance after 10 years of work. I become ineligible for this benefit if I change companies. So, I need to figure out, at what ...
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Effective Interest Rate Interpretation
Assume a $1,000 loan for 24 months, with monthly interest rate 2.5%, and monthly payments ($55.91 as calculated by any online tool, e.g. here).
This will give us annual interest rate (air) of 30%, ...
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Interest rate question
I'm having a little trouble figuring this out. Suppose I took out a loan with the following terms:
Loan Amount: 1,000
Interest Rate (APR): 10%
Compound Frequency: Monthly (12 compounding periods)
...
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Calculating Effective Annual Interest Rate & Annual Percentage Rate with fees (in R)
Problem
How to calculate Effective Annual Interest Rate (EAR) and Annual Percentage Rate (APR) with fees (in R) ?
I am interested in getting to know how much I am actually paying interest when fees ...
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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 ...
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