Personal Finance and Money Stack Exchange
Personal Finance and Money Stack Exchange

Questions tagged [financial-literacy]

for questions related to understanding basic concepts in finance or certain terms in a particular context

for questions related to understanding basic concepts in finance or certain terms in a particular context

645 questions
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9 answers

When someone's ability to pay is suspect, why would it make sense to give them more expensive credit?

Answers to the recent question "Why don't bond makers just get loans?" Seem to take it as a given that lending someone money at a 12% interest makes sense when there is already doubt about their ability to pay back the same loan at a 5%…
HAEM
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14
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2 answers

Why is Year-Over-Year (YOY) important?

I have a question regarding Year-Over-Year (YOY) as I am really confused right now. Why is YOY important?
Kayla Lee
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4
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1 answer

Mathematical proof for justification of interpretation of negative IRR

What would the mathematical proof look like of the interpretation of negative internal rate of return shown here look like which says that "Negative IRR indicates that the sum of post-investment cash flows is less than the initial investment; i.e.…
lampShadesDrifter
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3
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2 answers

How to calculate years until financial independence?

I am trying to understand the formula of Financial Independence which is as follows here, I am trying to understand what does withdrawal rate mean here but I can't understand. Can someone please explain it? Thanks.
user4884
3
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1 answer

what is the likely reason that the bank have a different year end than the other companies

what is the likely reason that the bank have a different year end than the other companies
nalan
3
votes
2 answers

Office and the human capital

I heard a business man saying "The Office is not a storage of the Human Capital". I do not understand this phrase and I believe there is an interesting and intuitive analysis behind it. Can please someone provide me a detailed analysis about it? Any…
Christina
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3
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2 answers

Balloon Payment on a Mortgage

How do I calculate the balloon payment on a 30 year mortgage with an APR of 7.8%, where the balloon payment must be made after 8 years.
Tarryn
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2
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6 answers

How do companies like WhatsApp and Hike earn money?

How do companies like whatsapp and hike earn money? How actually the Internet we use to to operate them will be actually converted into money??
user250385
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2
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2 answers

How to produce daily loan amortisation schedule

I've seen some examples of how to calculate an amortisation schedule either monthly or yearly. My bank charges interest on a daily basis so I'd like to create a spreadsheet detailing my current balance down to the day, including future dates. I'm…
ScaryAardvark
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2
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2 answers

How can the ROE on a stock be more than 100%?

I looked at a stock's ROE for Q3 2011 and it was more than 100%, but the operating margin wasn't very high, around 5%. How is this possible?
Razos
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2
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2 answers

Cash Transaction For Real Estate or Otherwise

When a seller of property of significant value or even an expensive exotic car requires a "cash purchase", possibly amounting to millions, is that actual cash - meaning buyers are hauling around suitcases of stacks of $100 bills, or is it just a…
bbuzzkilll
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Mathematical proof that NPV always negative when rate of return less than discount rate

Can anyone provide a mathematical proof that NPV is always negative when the rate of return is less than the discount rate? That is suppose that we have a single initial input, C0 a constant known rate of return on the investment, r > 0 and some…
lampShadesDrifter
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1
vote
1 answer

Value of tokens bought at an older price

My local milkman sells tokens which can be exchanged for milk to avoid fumbling with change everytime. The price for a 1 L of milk token used to be 50 previously. Now it costs 52. If I use a token bought at older price to buy milk today, will i make…
jack_finicky
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2 answers

Calculating future value on an initial deposit and then, incrementing this initial deposit as a recurring deposit yearly

I have a scenario where $10000 was initially invested into a savings account, at 6% pa compounded yearly. An amount of $1000 is then added annually to this savings amount after the first year, and we are to determine the value of the total…
HelpMePls
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1 answer

Why do they call them "financial products"?

As far as I know there are no products involved. All they sell are services. Why then this name "products"?
Boris Pavlović
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