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

Questions tagged [interest-rate]

a generic tag for question on rate of interest applicable. Ideally should be accompanied by geography tag and other specific subject tags

597 questions
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Does "monthly interest of 1.5% AER" mean that I will get a 1.5% interest every month?

I'll soon be 16 and I'm comparing a few high interest savings / current accounts and this one from Santander UK looks too good to be true, so I think I'm not understanding it right. Santander 1-2-3 current account says that I get Monthly interest of…
Miss Understood
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Is interest 'compound' unless otherwise mentioned?

When the term 'interest rate' is used, by default does it mean compound interest unless specified otherwise? At this link : http://www.rbcinvestments2.com/actiondirect/remote_fixedrates.html they use the word 'interest' many times, so that got me…
Victor123
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Why $537 a month for $100,000 loan, 5% interest, 30-yr term?

Apparently, a $100,000 loan with an interest rate of 5 percent and a 30-year term carries a payment of $537 a month. Why? I've fiddled with the numbers in various ways and can't get $537. For instance, ($100,000 * 1.05) / 30 / 12 = $292 a month.
David Faux
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Discount rate vs interest rate

I am getting confused with how to find the future value in DCF analysis. When the discount rate (i.e risk, opportunity cost etc.) increases, why does the future value increase? Isn't it supposed to decrease if the risk increases? It would make sense…
chrislam5459
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Annual interest rate from different monthly interest rates

Let's says I have unequal monthly interest rates (1,5% in the first month, 1,7% in the second, -0,8% in the third...) is there a way I can calculate what was my interest rate in the semester or in the year? On all the formulas I could manage to find…
RightMistake
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Why is interest on MMA lower in the US than in Europe?

Looking at this question, my first thought was "just use a MMA with > 2%". The Bank of Scotland offers 2.3% right now. The answers showed some ways with way under 2%, so I figured something had to be wrong. Looking up US MMAs, I typically found only…
mafu
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Structured investment CMS rate

There's a structured investment I've seen based on interest rates with this formula for it's floating portion: 6*(USD SOFR CMS30Y - USD SOFR CMS5Y). Based on my rudimentary understanding, SOFR is a new rate that replaced LIBOR. I know it stands for…
ronald christenkkson
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Present Value of a Perpetuity

I have a very basic understanding of Present Value of a Perpetuity. Present value = Amount / interest I have 2 questions below: (a) Suppose that the annual interest rate is 10%. What is the value of a perpetuity that pays $30 every year from the…
grooot
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Why isn't the highest savings account interest rate in Canada matched by other Deposit Institutions?

I screen shot this website. I'm assuming these Deposit Institutions ("DI") are almost perfectly competitive, because CDIC covers them all to $100 K, and transferring money between banks (cheques or InteraceTransfer) are cheap or free. Why aren't…
user44213
2
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2 answers

Deciphering this credit option

What exactly does this mean (in terms of cash flows per year say): There is a $10,000 truck. A $2,000 down payment and 24 equal monthly payments (with the first payment in one month) at 8% compounded quarterly. I'm having trouble visualizing…
nopcorn
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Eurodollars: How many days in 3 month LIBOR?

The CME webpage states that Eurodollar futures settle to 3 month LIBOR: My question is regarding the underlying LIBOR term deposit rate mentioned in the contract spec. Suppose today is Tuesday, Feb 26, 2019 and 3 month LIBOR is 2.57%. Is it true…
bcf
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Tracking the Madrid Interbank Offered Rate (MIBOR) and the Euro Interbank Offered Rate (EURIBOR)

Does anybody know how to quickly check (or track) the EURIBOR and MIBOR? I tried Google Finance, but it doesn't recognize the acronyms or the names of the rates. Thank you
Amelio Vazquez-Reina
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How can the interest on a savings account be higher than the mortgage rate?

Look at http://www.ratehub.ca/mortgage-rates-vancouver and observe mortgages available for 2.0% - 2.05%. Look at http://www.tangerine.ca/en/landing-page/bonus50/index.html it gives you 2.5% interest. I can't understand how the bank can possibly…
chx
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Loan with Compensating Balance

Trying to calculate effective interest rate on loan with the following terms: 128 day term loan 5.4% interest rate 12% compensating balance required Stuck by idea of compensating balance and how to factor that into the math.
Guest
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LIBOR and prime rate fluctuation

Why does the LIBOR fluctuate but the prime rate does not fluctuate (as often)? Is it because LIBOR is not regulated by any particular bank but it is based on a mutual agreement between the banks; whereas the prime rate is regulated by the central…
Victor123
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