Anyone good at maths please?

[Twentyfour7]

I am trying to work out annual rate of interest.

If daily rate of interest is 4.75%

is annual: 4.75% x 365 = 1733.75% ?

Thanks

24/7

[WheelyTyred]

Simple or compound?

[Twentyfour7]

compound i think

[anonymous-user]

WheelyTyred said:

Simple or compound?

That is the question. The above is correct for simple but compound is something silly like 2000 million %

[oop north]

Formula in excel would be 1.0475^365. The ^ stands for “to the power of”. That gives an answer from which you have to deduct 1 to get the answer - so the formula would be (1+r)^n where r is the interest rate per period (as a decimal) and n is the number of periods

[M4cruiser]

.. yes, so that's 22million percent.

I rather think the original question is wrong.

[anonymous-user]

M4cruiser said:

.. yes, so that's 22million percent.

I rather think the original question is wrong.

He’ll never be able to pay off that loan, that’s for sure

[Twentyfour7]

I'm trying to work out the interest on late payment of rent

The contract says "To pay interest at the rate of 4% above the Bank of England base rate from time to time prevailing on any rent or other money lawfully due from the Tenant under this agreement which remains unpaid for more than 14 days, interest to be charged daily from the date the payment fell due until payment"

The rent owing is £595 from August 1st 2018 and a further £273.86 from 1st September 2018

[anonymous-user]

Simple interest at base rate +4% per annum, charged for the number of days overdue.

[KenC]

As the BoE base rate is an annual rate you should use 4.75% as the annual rate. Daily interest is 4.75%/365.

[Twentyfour7]

When you read the clause I thought it was 4.75% a DAY as I thought that the high interest will encourage payment??

Can anyone recommend an online compound interest calculator please?

[anonymous-user]

Twentyfour7 said:

When you read the clause I thought it was 4.75% a DAY as I thought that the high interest will encourage payment??

Can anyone recommend an online compound interest calculator please?

Google for gods sake, there are literally thousands of them.

[Twentyfour7]

Okay sorry
Just aload of American ones some of which are pretty confusing, anyway I've tried Money Jar again
Thanks all

[anonymous-user]

You don’t need a compound interest calculator. That clause means you pay simple interest.

[NickCQ]

Twentyfour7 said:

The rent owing is £595 from August 1st 2018 and a further £273.86 from 1st September 2018

As of 30th September at 4.75% interest on an ACT/360 basis including 14 days' grace the guy owes you £873 versus £869 unpaid.

Total interest of 0.48% which makes sense based on 36 days of arrears (weighted average)

If you were to apply the interest rate compounded daily the amount owing would be £5,580!

[Twentyfour7]

I'll take the second figure

[Elysium]

Twentyfour7 said:

When you read the clause I thought it was 4.75% a DAY as I thought that the high interest will encourage payment??

Can anyone recommend an online compound interest calculator please?

It means 4.75% per annum compounded daily

Use the standard calculator here to work it out:

https://www.thecalculatorsite.com/finance/calculat...

Edited by Elysium on Sunday 30th September 23:45

[mcflurry]

For the sake of £4, it's probably distracting away from the original debt..

[dan_87]

Sorry to hi-jack...

Does anyone have a such formula to calculate annual performance based on monthly contributions. I could do with understanding how well my fund has performed over the year- I cant get my head around the calculation given monthly contributions.

Example say:

Fund at start of year- NIL
Monthly contributions- £100
Fund value at end of year- £1500

I am right in saying that it is NOT £1500-(12*100) OVER 1200?

Surely the fund has performed better than 25% over the year?

[Du1point8]

something like this?

http://compoundaily.com/