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Amortization table for loan with daily compounding interest?

Jan 23, 2011 by Jonathan | Posted in Personal Finance

I insufficiency to make an amortization table for my student loan, preferably in Excel. Interest compounds daily and I make fixed, once-a-month payments. Any suggestion on how to do this?

Can anyone help me with this one math problem involving loan interest?

Apr 06, 2010 by Becky G | Posted in Mathematics

Can anyone expropriate with this one math problem involving loan interest?

I was wondering if anyone could help me with this one math problem . I am trying unkind to understand math but am still struggling with assignments. Any help would

Loan interest amortization caLcuLator Loan interest rate formuLa

Are you fa a tough financial time? Has an pinch come up? Do you require cash for it? Is your bad ascribe stopping you from going to the ...

[public] PSA: My career track (or, what's an actuary?)

More specifically, last summer was when I joined my company's accelerated actuarial student rotational program: "accelerated" because the program pushes you to get through the battery of actuarial exams and get your designations quickly, and "rotational" because every 12-18 months you rotate to a new assignment in the company, with the aim of getting to see as many different functions and/or business units as possible. Actuaries are basically people who use highish-level-math (mostly probability, statistics, and calculus) to solve problems involving contingent risks over time. Most actuaries work for the government or insurance companies; they perform such tasks as pricing and re-pricing insurance products, conducting experience studies on inforce policies, valuing inforce business (to determine the necessary amount of reserves to hold), forecasting the business into the future, and so on. The SOA recommends 100 hours of studying for each exam-hour for each of these (the shortest is 2 hours, the longest is 3.5). I personally think that's a little overboard, but it underscores how difficult these exams are. In each sitting, only about 40% (or maybe less? I haven't checked the detailed statistics) of those who take each of these exams pass. My case (passing the first four all on my first respective attempts at each) is rather unusual like that. The upshot of all this is that it's a long and difficult process. The preliminary exams are typically only offered every May and November; P is the one exception I know, being offered once each quarter, and the others may become the same way as they gradually get converted to Computer-Based Testing (if you've ever taken one of the GRE tests, it's the same company that administers those: Thomson Prometric). As for the actual job... it's an office job, with all the advantages thereby implied, in which I get to work with numbers all day at my computer. (And if I get to do formula or table coding for the actuarial valuation/projection software packages we use, that's better; if I get to develop new utilities to make our lives easier, even better! But since joining the rotational program, I don't get that kind of job very often anymore.) Advantages of being on the rotational program include: getting to experience all sorts of different areas of the company and different actuarial disciplines; getting generous study time and reimbursement for all exam fees and study materials; higher base salary than I had before, for the same job title; and bigger raises and bonuses on passing exams. But those who graduate the program (successfully obtain their FSAs) are in a pretty damn enviable position: they can usually post to a Director-level position right away, which is an automatic six figures. And having an FSA affords you incredible job security: actuarial jobs don't get outsourced ever, and there's always some new openings available. That's why I'm putting myself through this now: I like the work itself well enough, I've proven my ability to get through these exams (the preliminary exams are supposedly the best indicator of whether a candidate will eventually be able to obtain the FSA designation), and I'll have awesome earnings potential and job security once I get through it all. As long as I can see I've made positive, discernible contributions to whatever companies I've worked at, and as long as the companies stay in the business of providing peace of mind, then I expect to, yes. If I can become a systems actuary, even more so. (It's always a cool feeling to know that people are still using utilities I wrote.)

Source: Qui sera sera

How to Compare Personal Loan Quotes

Interest Rates

There are many ways of calculating interest rates. The APR (Annual Percentage Rate) includes interest rates and other fees and costs on an annual basis. However, you will also hear about a monthly interest rate (and probably find it more useful in certain occasions). The APR is the most inclusive rate and shows most of the costs associated with the loan on an annul basis. However, even the APR can’t show the implication of some loan terms costs which cannot be pondered without consideration of the individual requesting the loan or just cannot be calculated on an annual basis.

You need to be aware that some loans offer an introductory interest rate which after a period of time is changed for a higher interest rate. An average of these two rates will be found on the small print of the loan offer due to legal reasons. However, the higher rate may turn the monthly payments unaffordable for you and the information of the average rate useless.

Monthly Installments

If you really want to know how the loan will affect your finances you’ll probably want to compare the monthly installments you’ll have to pay with your income. You should then request the lender to provide the loan amortization schedule. This table will show you over the whole life of the loan, the amount of each one of the monthly payments you’ll have to cancel.

Moreover, it will also show, the amount of money and percentage that is being destined to cancel interests and principal. This information has economic, legal and tax implications that cannot be covered in this article and should be discussed with professionals. Nevertheless, the figures will give you an idea of the loan costs in terms of interests on each month as well as the amount of principal you will be cancelling.

Other Fees and Costs

There are also other fees, costs and even rates not included in the APR. If you happen to miss payments or pay late, you’ll incur in penalty fees. These fees vary from one lender to another and should also be considered when requesting a loan. Also, once you’ve missed a payment, some lenders raise the interest rate charged for the loan or add up to it an additional punitive interest rate that turns the loan more costly.

You may think that you won’t have to worry about penalty fees since you won’t pay late or miss payments. Truth is that everyone who has, thought the same. Nevertheless, there are other things to be aware of: There are transaction fees, closing costs, administrative costs, legal fees, etc. that may or may not be included in the APR. Make sure to request the lender detailed information of all the fees, costs and rates you’ll have to pay and to offer you that information in written. This way you’ll be able to easily file a claim if a discrepancy arises.

Sarah Dinkins is an Expert Loan Consultant at badcreditfinancialexperts.com badcreditfinancialexperts.com where she helps people to repair their credit and to get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and other types of loans and financial products.

Source: All About Financial Matters