Sentences with phrase «effective interest rate then»

But if you want to know the exact formula for calculating annual effective interest rate then please check out the «Formula» box above.

Not exact matches

I won't have that so I see a third option as maintaining a permanent - ish portfolio, then diversifying into property at or near retirement by paying off a buy to let mortgage (unless rising interest rates — or poor returns — have already made this cost effective).

We then apply a spread around the benchmark interest rate («BM») in tiers, where larger cash balances receive increasingly better rates, to determine effective rates on:

Run the numbers and figure out how much that actually is, and then think about how much you need this infusion of cash right now (whether you'd take out a loan at this effective interest rate) and whether someone else is likely to make you a better offer for that amount of ownership.

If it is a 3 % balance transfer interest rate for six months with a 4 % balance transfer check fee then the effective annual percentage rate is 10 % which could be more than the interest rate you're already paying.

You can get a sense of how a bond fund will fare when interest rates rise by looking at its effective duration, a figure you can find by plugging the fund's name or ticker symbol into Morningstar.com and then clicking on the Portfolio tab.

Posted rate is 2.472 % but as you can choose interest either paid out monthly or else compounded monthly then 2.5 % is the effective annual rate.

If you are able to claim the mortgage interest deduction, and your effective tax rate is 20 %, then the effective after - tax rate of a 4.5 % mortgage is 4 % * (1 - 20 %) = 3.2 %.

If the savings interest is taxed at 20 %, then the effective after - tax rate of the 10 % savings account would be 10 % * (1 - 20 %) = 8 %.

One effective approach to debt reduction is to tackle first the credit card balance that boasts the highest interest rate and then pay off the remaining cards in descending order, rate-wise.

If LIBOR is currently at 1.00 %, then the effective loan interest rate would start at 3.00 %.

When interest compounds more than once per year then you should rely on the annual effective interest rate as a more accurate picture of the true interest that is being earned instead of the regular annual interest rate.

Converting from the annual interest rate to the annual effective interest rate is as simple as entering in the annual interest rate into the field and then clicking on the calculate button.

If you have access to your funds with 14 days of needing them, and have a credit card to buffer the immediate cash problem, then the issue of easy access is moot, while managing a higher rate of interest in the «TFIA» (Investment Account vs Savings Account) will be much more effective than putting your extra money into a cash account that barely matches inflation.

If the effective interest rate (after taking into account the interest deduction) that you're paying on your mortgage is 3 % — 4.5 % and you can earn 5 % or more from your investments then it doesn't make financial sense to payoff your mortgage.

If the usury limit is 10 % and 9 % is the note rate, but 4 points are charged, the points are deducted from the loan amount advanced and that amount is computed over the term with the original payment required to be paid and the effective interest rate is then computed, the annual percentage rate, which will be higher than the note rate in this case.