Let's talk about money - The Finance Thread

2456752

Comments

  • f_manf_man Joined: Posts: 647
    yes. the recruiting girl IS always insanely hot lol. thats marketing for ya.
    dantron:
    Fuck, guilty gear has made you all pussies.
  • SystemSystem Joined: Posts: 508,676 admin
    hey does anyone have any good financial planning lit books they can recommend?

    none of this personal finance for dummies crap. looking for stuff with solid theory/investment advice for recent college grads.

    Getting advanced finance books may not help. Depending on the book they may be glorified accounting textbooks. Going for the 'Dummies' books are a great way to start then you should move into the more advanced areas such as Investing, real-estate, Business, etc etc.
  • mr. newbiemr. newbie 2 frame reversals :D Joined: Posts: 671
    just wanted to subscribe

    gonna have to adjust it to fit my $150 a week situation.
    Its not a videogames videogame. Its certainly not a gamers videogame. Its candy for gamers, about videogames, expressed as a videogame.
  • SystemSystem Joined: Posts: 508,676 admin
    thanks to everyone who contributed to this thread. My economics class was not really specific on how these things work and now i understand it much better.
  • forgenjuroforgenjuro Joined: Posts: 1,403
    I work for Applied Materials (Santa Clara), which is where I first interned while in college, and secured a full time position upon graduating. I initially did get the internship because I got lucky and met a girl in a school club (one of those finance/accounting clubs) who was interning there and was leaving, so I could take her position. I did not go through a post-graduation job hunting phase (and seriously didn't want to) so I don't exactly know what those folks did to get their jobs.

    The finance offices in SF are likely to be the kinds of consulting, investment banking, CPA firms, government related etc. There was a lot of recruiting going on for the Big 4 firms at most bay area campuses, and anyone who had decent grades usually got a job there (oh and being a hot looking girl was a lock, notice how the recruiting girl is always insanely hot for some surprising reason). What sucks is that CPA firms do their recruiting for full time positions during winter time I believe, and I really have no idea of the recruiting of the other offices.

    Holy shit! You work for AM! My dad used to work there.... Until he got pink slipped....

    But I remember that company has very good benefits. We were living pretty well.

    When i have some time ill contribute to this topic later.
  • mastermindmastermind BACON STRIPS Joined: Posts: 2,846 ✭✭✭✭✭ OG
    Trust me, it works, my future wife and I put 1500 a month into an ED account and it worked out nicely. Got everything we wanted towards our house minus the finished attic.
    Anyway here is one suggestion is that whatever you make take about 1 hour worth of work for each day and add it into your savings weekly. For example, if you make about $34,000 a year that is the equivalent about $16.35/hr. So you should be saving about $81.73/wk. With interest bearing accounts such as INGDirect (i have) and others, that money will increase in a heartbeat.

    So after this was posted, I went ahead and opened an Emigrant Direct account. I took akumatrunigga's advice and put the equivalent of five hours a week into the account. I make $17.90/hr, so that turned out to be $89.50/week added into the account with 4.93% interest. As of right now, my account's just under $900. Surely it's nothing to applause at, but that's money that I don't see at payday, pushed off to a rainy day/stashed away fund. And it's money that I know is going to a good place: away from being spent. =P
    -mastermind. NEXT TIME, WE EAT FIGHT STICKS.

    SF2 code: t+ c(+) T-@+ r f(++) g@+ m? s->++ v+ M- n--:-- o+
  • duhaas21duhaas21 Fucki'n Chuck Norris..... Joined: Posts: 86
    very good thread indeed...prolly the best I've ever seen on SRK short of the "Women" posted quite some time back.

    EDIT: ^^mastermind...i would say that $900 is something to applasue at, casue you invested wisely and now have about a weeks pay for not doing any formal work in about 3 weeks.....Its a good step, and you keep it up weekly with the interest compounding, who knows how large it could acrue in a year, 5 years or 10 years +. Keep it going.
    "Take what you love, hold on to it, and never let it go"
    R.I.P Brian Graham AKA Mummy-B - 8/25/04
  • UnreallysticUnreallystic Painyatta Joined: Posts: 13,171
    Good reads. I'm currently trying to clean up my credit. Its phucking horrible, despite my best efforts. Frustating because I want to buy a house and can financially afford it, but my credit rating will KILL me. Back with more later.
    - :bluu:
  • terracottaterracotta Joined: Posts: 365
    there was another posted titled along the lines of "what's the quickest way to get rich" or something. that had more pages too :tup:
  • BananaWeedBananaWeed Virtual Hobo Joined: Posts: 1,833
    Great thread.

    Did any of you start investing while still in school?

    I'm going into my final year of university, and only have about $5,000 saved up. I don't think I can invest that, since I'll probably be dipping into it throughout the year. My current bank (BMO) has an interest rate of 2.6% on savings accounts I think. I was just gonna let it sit in there, since I get free banking (student plan).
    Hold me Thrill me Kiss me Kill me
    PSN = BananaWeed
  • mastermindmastermind BACON STRIPS Joined: Posts: 2,846 ✭✭✭✭✭ OG
    Good reads. I'm currently trying to clean up my credit. Its phucking horrible, despite my best efforts. Frustating because I want to buy a house and can financially afford it, but my credit rating will KILL me. Back with more later.
    - :bluu:

    If you have credit cards, cut 'em up, son. For the ones you absolutely have to keep, ask about getting the spending limit reduced if you're on a zero balance. Pay them off, pay them off, pay them off. Try not to apply for anything else that will ding your credit report (new cellphones, credit cards for stores, etc.). Get a copy of your credit report, too. Find out what's being thrown on there.

    I'm pretty cheap as it is, so my two only credit cards never see anything over 5% of their limits (one card $1000, the other is a miles card limited at some insane 5-digit number :looney: ). And with my bank accounts, $1000 is considered $0 to me. So if I ever spend and my account falls under $1000, I panic like a mofo and don't eat for a while until it gets padded back up. hahah
    -mastermind. NEXT TIME, WE EAT FIGHT STICKS.

    SF2 code: t+ c(+) T-@+ r f(++) g@+ m? s->++ v+ M- n--:-- o+
  • VruSVruS Bild Meer Joined: Posts: 802
    Great thread.

    Did any of you start investing while still in school?

    I'm going into my final year of university, and only have about $5,000 saved up. I don't think I can invest that, since I'll probably be dipping into it throughout the year. My current bank (BMO) has an interest rate of 2.6% on savings accounts I think. I was just gonna let it sit in there, since I get free banking (student plan).


    I also have a bmo premium savings account but imo the interest is not that great compared to other high interest accs like pc and e*trade. I'll probably switch to one of those banks soon.
  • AcEtUrNeDjOkErAcEtUrNeDjOkEr SRK Barbershop DJ Joined: Posts: 2,903 ✭✭✭✭✭ OG
    Great thread.

    Did any of you start investing while still in school?

    I'm going into my final year of university, and only have about $5,000 saved up. I don't think I can invest that, since I'll probably be dipping into it throughout the year. My current bank (BMO) has an interest rate of 2.6% on savings accounts I think. I was just gonna let it sit in there, since I get free banking (student plan).

    Yes, I started to invest in my freshmen year of college, worked all 5 years in school and stepped it up every year. Get rid of your savings account at a bank, its highway robbery! 2.6% with probably limitations on how much you need and a monthly/yearly fee. ED (Emigrantdirect) has no fees and no limits, AND you get 5.05% back. I don't know about you, but thats more money for your money!

    Credit: Pay your bills, enough said. If you have a balance on a CC, pay the minimum at the very least! If you start skipping payments or go into collections, GGPO!

    My personal debt is more than I want it to be now, I have about 10G's in debt (not including car and school debt...but does include a bomb ass honeymoon!) Getting grown and not to mention my wife is an CPA accountant, money is a issue at the household, so what I did (which she suggested) was to get another bank account *they are free at Wachovia* and basically have one account where all my bills pull from (also the account where my pay check comes in) and then other other account is "Ace's play money"

    So, in a sense, I pay myself every week. $100 on friday goes from my "Bill" account to my "Ace" account. Thats the money I use to buy games, eat out, buy liqour, gas, etc. So when pay day comes, I have a spreadsheet of what comes out that account, anything left over goes to the highest APR credit card I have. Right now that is AMEX; but I also still put $50 on my other cards as well.

    Another thing you can do is call the credit card company and ask for a lower APR. I think the norm right now is 12-18%; I called them and said "I want a fixed 8.99% for the life of the card"; of course it took like 3-4 people to get them to lower it, but now that is less money they are getting and more than I am putting towards paying off the debt.

    If you do miss a payment, be it, forgot or you don't have the funds, call them....I repeat, CALL THEM and tell them! They will more than likely give you an extension so your credit will not be messed up. They will work with you! You just need to ask, now don't do it every other month though.

    Once your out of debt, put that money that you were putting into your cards into a savings account, you will see your wealth grow QUICK! As a general rule I tell people, you want to have a nice pot to fall back on. I lost my job and was out of work for a month, I still payed my bills and had fun (most of my friends didn't know I was out of work). I had something to fall back on. Life will be easier if you take care of your mind, body and soul first, second is your money.
    Koop: omg fail fail fail... u cant drive a kia soul windows down pumpin.......
    mc hammer pumps an a bump
    Aceturnedjoker: WTF! LMAO
    Normal Tuesday conversation with Koop on GTalk...LOL
  • BananaWeedBananaWeed Virtual Hobo Joined: Posts: 1,833
    Hmm, I don't know if I like the idea of using an e-bank account. Do these places have physical locations where I can withdraw money? I dunno bout the States, but in Canada, we have to pay a service fee ($1.50 from the ATM, and another $1.50 from your bank - a whopping $3.00) to use an ATM from a different bank. I don't wanna get raped by service fees if I'm gonna use an e-bank savings account.
    Hold me Thrill me Kiss me Kill me
    PSN = BananaWeed
  • AcEtUrNeDjOkErAcEtUrNeDjOkEr SRK Barbershop DJ Joined: Posts: 2,903 ✭✭✭✭✭ OG
    Hmm, I don't know if I like the idea of using an e-bank account. Do these places have physical locations where I can withdraw money? I dunno bout the States, but in Canada, we have to pay a service fee ($1.50 from the ATM, and another $1.50 from your bank - a whopping $3.00) to use an ATM from a different bank. I don't wanna get raped by service fees if I'm gonna use an e-bank savings account.

    These are savings account, not debt accounts. Yes, in the states some banks will charge you a fee (more sometimes). Other banks give you a set number per month you can use. The most I paid was in vegas, 5 bucks to use the ATM, wachovia covered me though.
    Koop: omg fail fail fail... u cant drive a kia soul windows down pumpin.......
    mc hammer pumps an a bump
    Aceturnedjoker: WTF! LMAO
    Normal Tuesday conversation with Koop on GTalk...LOL
  • VruSVruS Bild Meer Joined: Posts: 802
    Hmm, I don't know if I like the idea of using an e-bank account. Do these places have physical locations where I can withdraw money? I dunno bout the States, but in Canada, we have to pay a service fee ($1.50 from the ATM, and another $1.50 from your bank - a whopping $3.00) to use an ATM from a different bank. I don't wanna get raped by service fees if I'm gonna use an e-bank savings account.

    for PCF you can use cibc bank machines.
  • IlavosIlavos Memento Mori Joined: Posts: 194
    In The Book Of Life Yours Is The Boring Chapter-PrufRock
  • Angelic DiabloAngelic Diablo Watching everything Joined: Posts: 844
    I'm surprised no one brought up the fact the Canadian Dollar reached parity with the US Greenback today. It reached a high of 1.0004 USD before closing at 97.89. Declining US economy and soaring crude oil prices seem to be the major factors.
  • Okazaki IIIOkazaki III PARRY THAT SHIT SON Joined: Posts: 681 ✭✭✭✭✭ OG
    I wont get into Financial planning items like Mutual Funds, stocks, Insurances because its too risky to give advice on these topics to people without intimatley knowing your financial situation.

    What type of intimate details do you mean? See I want to get into funds and stocks, but whenever I try to look for info online I get snowed under with too much information that I cannot make any sense out of.
  • JavidJavid When will all this end? Joined: Posts: 1,982 ✭✭✭✭✭ OG
    So suppose I invest $5000 into this account today:

    http://www.banking.pcfinancial.ca/a/products/savingsPlusAccount.page?referid=P1

    How much interest am I looking at 6 months down the road? I kinda suck at this kidna stuff, but this is one of the best Canadian high interest accounts.
    ...

    Avatar by Savaii64
  • AcEtUrNeDjOkErAcEtUrNeDjOkEr SRK Barbershop DJ Joined: Posts: 2,903 ✭✭✭✭✭ OG
    So suppose I invest $5000 into this account today:

    http://www.banking.pcfinancial.ca/a/products/savingsPlusAccount.page?referid=P1

    How much interest am I looking at 6 months down the road? I kinda suck at this kidna stuff, but this is one of the best Canadian high interest accounts.

    Ummm...If I am looking at this correctly, the APR for 5000 would bring you 1%. I'm telling you guys, www.emigrantdirect.com is probably the best one out there (dont know if they are in canada or not, but its all online so I *think* it shouldn't matter) I think they are at 5.15%, which is more than 1%.
    Koop: omg fail fail fail... u cant drive a kia soul windows down pumpin.......
    mc hammer pumps an a bump
    Aceturnedjoker: WTF! LMAO
    Normal Tuesday conversation with Koop on GTalk...LOL
  • akumatruniggaakumatrunigga Joined: Posts: 3,312
    So suppose I invest $5000 into this account today:

    http://www.banking.pcfinancial.ca/a/products/savingsPlusAccount.page?referid=P1

    How much interest am I looking at 6 months down the road? I kinda suck at this kidna stuff, but this is one of the best Canadian high interest accounts.

    I suggest getting a financial calculator. Besides when you keep it with you every where you go (such as buying a car through financing) many people will know you arent bullshittin.

    Currently in my situation, i finally doing some serious stuff in RE no sales yet but im basically an assistant to the broker. Im salaried plus commission. Im still trying to do the suggestion that I posted in the thread. since im driving now, the first pay period of the month goes to taking care of important stuff such as car note, insurance, monthly parking pass, and health insurance (indvidual). Just about the entire check. However, I dont have to worry about if i go over since there is an overdraft credit that i can use upto $165. So it is like having an additional $165 biweekly. The second pay period goes to debts and going out to social gatherings (if they are cheap). But since i took a $9K paycut to be in RE i cant go out as much.
    Xanatos: You know the answer to that Owen. Pay a man enough, and he'll walk barefoot into hell.
  • mastermindmastermind BACON STRIPS Joined: Posts: 2,846 ✭✭✭✭✭ OG
    Small update: Since opening my EmigrantDirect account in June with a shade under $90/week, I'm now at just a little over $1500 in the account! Gotta love watching money sit and grow.

    I have yet to get my quarterly statement for my 401(k), but I actually aggressively increased my investment strategy at the beginning of this thread. I'm really hoping it'll pay off.

    EDIT: just checked online. Wow! ...let me just say that going aggressive PAID OFF BIG TIME!
    -mastermind. NEXT TIME, WE EAT FIGHT STICKS.

    SF2 code: t+ c(+) T-@+ r f(++) g@+ m? s->++ v+ M- n--:-- o+
  • AcEtUrNeDjOkErAcEtUrNeDjOkEr SRK Barbershop DJ Joined: Posts: 2,903 ✭✭✭✭✭ OG
    ED *not Erectial Disfunction* is the way to go IMO. I am going to start putting money in mine as soon as I pay off my credit cards (Putting 1600 a month towards them....you dont know how much that shit HURTS); but soon I should be putting all that into an ED account.
    Koop: omg fail fail fail... u cant drive a kia soul windows down pumpin.......
    mc hammer pumps an a bump
    Aceturnedjoker: WTF! LMAO
    Normal Tuesday conversation with Koop on GTalk...LOL
  • MrBlankMrBlank Pimp God Inc. Joined: Posts: 568
    dude what was your strat mastermind.

    im thinking about doing an emigrant acc too now.
    --Pimp God Inc.-- "The Backhand stays warm when stupid bitches run they mouths"
    |Blank|Dasiastic|SF_Phocus|Pherai| "From East to West we hold it down"

    -Team Diss Alliance's Verbal Assassin-
    |S.a.g.a|Blank|Pained Auron|Ronin|FireIsWet|JHoon|Athan|Slide|VSlash|
  • akumatruniggaakumatrunigga Joined: Posts: 3,312
    So after this was posted, I went ahead and opened an Emigrant Direct account. I took akumatrunigga's advice and put the equivalent of five hours a week into the account. I make $17.90/hr, so that turned out to be $89.50/week added into the account with 4.93% interest. As of right now, my account's just under $900. Surely it's nothing to applause at, but that's money that I don't see at payday, pushed off to a rainy day/stashed away fund. And it's money that I know is going to a good place: away from being spent. =P
    this is what he did
    dude what was your strat mastermind.

    im thinking about doing an emigrant acc too now.
    Xanatos: You know the answer to that Owen. Pay a man enough, and he'll walk barefoot into hell.
  • mastermindmastermind BACON STRIPS Joined: Posts: 2,846 ✭✭✭✭✭ OG
    dude what was your strat mastermind.

    im thinking about doing an emigrant acc too now.

    For my 401(k)? I haven't read much into it, but all I remember is that before I first posted in the first page of this thread, my portfolio was on a moderate risk. I had a little guide from MassMutual that work gave me on my first day of the job; it defined what was conservative and what was aggressive, ultra aggressive, etc. I was Conservative for the first quarter of my job because I wasn't sure if I was gonna stay (get fired, find another job, etc.), then I read this thread and actually switched up my investments, and the investments are paying off.

    Unless you're talking about my EmigrantDirect account, then I followed akumatrunigga's advice on the first page:
    Anyway here is one suggestion is that whatever you make take about 1 hour worth of work for each day and add it into your savings weekly. For example, if you make about $34,000 a year that is the equivalent about $16.35/hr. So you should be saving about $81.73/wk. With interest bearing accounts such as INGDirect (i have) and others, that money will increase in a heartbeat.

    I put in about $89.50 a week because my salary, when broken down, is equivalent to about $17.90/hr.

    EDIT: I took too long to post. hahah
    -mastermind. NEXT TIME, WE EAT FIGHT STICKS.

    SF2 code: t+ c(+) T-@+ r f(++) g@+ m? s->++ v+ M- n--:-- o+
  • NightNight pure hot girl cum... Joined: Posts: 505
    So suppose I invest $5000 into this account today:

    http://www.banking.pcfinancial.ca/a/products/savingsPlusAccount.page?referid=P1

    How much interest am I looking at 6 months down the road? I kinda suck at this kidna stuff, but this is one of the best Canadian high interest accounts.

    I took a quick look at the chart, and above $1k is 4.25%.

    5k for one year at 4.25%.

    Using a financial calculator (look for "Future Value" calculations), $5,000 present value at 4.25% for 6 months (half a year) is about $105.14 in interest.



    When the Feds cut interest rates a few weeks ago, don't get hopes up of seeing higher interest rates at banks anytime soon.


    I'm constantly monitoring stocks and their earnings these days. I sold my Apple stock last week at $157, having bought it at an average of $137 back in July, so that's about I think around 14% gain in 3 months. Not too bad. The market was definitely up a bit over the past couple weeks, the Dow being over 14,000 for a little while, but it can't seem to stay above that for very long. I'm expecting somewhat of a pullback as people are cashing in their profits, so now might be a good time to monitor what you're interested in and find a good price to get in during a possible pullback.
    Chun, Sakura, Cammy, Karin, Morrigan, Lilith, Rose, Mika, Elena, Ibuki, Mai, Yuri, Ruby Heart, Rouge, Son Son, Juli, Juni, Nakoruru, Makoto, etc. - The Ryu intercourse list. He's done em all.
  • Okazaki IIIOkazaki III PARRY THAT SHIT SON Joined: Posts: 681 ✭✭✭✭✭ OG
    ^Who is your broker? Do you use your local bank or do you have an online broker?
  • AcEtUrNeDjOkErAcEtUrNeDjOkEr SRK Barbershop DJ Joined: Posts: 2,903 ✭✭✭✭✭ OG
    Wife and I are getting into stocks as well, we have some shares in VMWare, needless to say its doing well, but really don't know what we are going to do with it (probably hold on and forget about it)
    Koop: omg fail fail fail... u cant drive a kia soul windows down pumpin.......
    mc hammer pumps an a bump
    Aceturnedjoker: WTF! LMAO
    Normal Tuesday conversation with Koop on GTalk...LOL
  • akumatruniggaakumatrunigga Joined: Posts: 3,312
    I took a quick look at the chart, and above $1k is 4.25%.

    5k for one year at 4.25%.

    Using a financial calculator (look for "Future Value" calculations), $5,000 present value at 4.25% for 6 months (half a year) is about $105.14 in interest.



    When the Feds cut interest rates a few weeks ago, don't get hopes up of seeing higher interest rates at banks anytime soon.


    I'm constantly monitoring stocks and their earnings these days. I sold my Apple stock last week at $157, having bought it at an average of $137 back in July, so that's about I think around 14% gain in 3 months. Not too bad. The market was definitely up a bit over the past couple weeks, the Dow being over 14,000 for a little while, but it can't seem to stay above that for very long. I'm expecting somewhat of a pullback as people are cashing in their profits, so now might be a good time to monitor what you're interested in and find a good price to get in during a possible pullback.
    man i envy you right now. Im in the process of getting mutual funds, and an IRA together soon . It is just that paying all of these fees to get my feet off the ground in the RE game is killing me. :lol: If I dont get a sale soon I'll go mad! Geez im tired of running into people with shitty credit and work history trying to force the issue in getting a home. These clowns dont even qualify for FHA loans
    Xanatos: You know the answer to that Owen. Pay a man enough, and he'll walk barefoot into hell.
  • NightNight pure hot girl cum... Joined: Posts: 505
    ^Who is your broker? Do you use your local bank or do you have an online broker?

    I just use E*Trade.

    Wow, RIMM certainly did well in response to yesterday's earnings. I'm continuing to watch it, not yet going to buy into it based on hype... but keeping a close watch today and next week...

    VMWare I've been watching too... floating around at the low 90s for now, and if it dips, I might consider getting into that.
    Chun, Sakura, Cammy, Karin, Morrigan, Lilith, Rose, Mika, Elena, Ibuki, Mai, Yuri, Ruby Heart, Rouge, Son Son, Juli, Juni, Nakoruru, Makoto, etc. - The Ryu intercourse list. He's done em all.
  • SystemSystem Joined: Posts: 508,676 admin
    I took a quick look at the chart, and above $1k is 4.25%.

    5k for one year at 4.25%.

    Using a financial calculator (look for "Future Value" calculations), $5,000 present value at 4.25% for 6 months (half a year) is about $105.14 in interest.

    Not that it will make a huge difference, but you're making the assumption that the 4.25% annual rate is compounded biannually.

    If you don't have a financial calculator, the formula is FV = PV(1+i)^t
    where FV = Future Value
    PV = Present Value
    i = interest rate
    t = time

    So for this example, with a 5000 present value and 4.25% interest rate:

    FV = 5000*(1.0425)^(.5) = 5105.14
  • Chozen1Chozen1 Joined: Posts: 716
    stocks = meh rather than wasting your time on nonsense you should be investing in your health and retirement at an early age. why deal with shit that fluctuates & run the risk of losing it when you could take time to invest as little as $70 a month into an insurance policy that will help you out in the future rather. Learn to balance what you can afford & shop smart, treat your expenses as bills in general. Be prompt and on time with your payments don't make minimum payments, always surpass them. I can go on & on but the end result is you decide the determining factor of your economic reasoning.
    "The event is the journey, not the destination. because we all know what that is"
  • SystemSystem Joined: Posts: 508,676 admin
    stocks = meh rather than wasting your time on nonsense you should be investing in your health and retirement at an early age. why deal with shit that fluctuates & run the risk of losing it when you could take time to invest as little as $70 a month into an insurance policy that will help you out in the future rather.

    Well, if you invest in financial instruments (stocks, bonds, etc.) your expected outcome is profitable. If you buy an insurance policy, your expected outcome is a loss.

    I'm not sure why you think the two are mutually exclusive though. I think it's wise to have insurance policies (life, health, auto, property, personal liability,) to cover potential catastrophic losses, and invest in financial instruments for retirement. I do not agree with buying life insurance as an "investment for the future." Commissions are higher than brokerage accounts, and you expected to lose money (how else would the insurance company make money?).

    I take it you are extremely risk averse?
  • f_manf_man Joined: Posts: 647

    Using a financial calculator (look for "Future Value" calculations), $5,000 present value at 4.25% for 6 months (half a year) is about $105.14 in interest.
    Not that it will make a huge difference, but you're making the assumption that the 4.25% annual rate is compounded biannually.

    If you don't have a financial calculator, the formula is FV = PV(1+i)^t
    where FV = Future Value
    PV = Present Value
    i = interest rate
    t = time

    So for this example, with a 5000 present value and 4.25% interest rate:

    FV = 5000*(1.0425)^(.5) = 5105.14

    i dont get what you're trying to correct in his statement?

    5105.14 - 5000 = 105.14

    it sounds like he just said "twice of 1 is 2." and you're saying

    "yes but the formula goes 1 + 1 = 2."
    dantron:
    Fuck, guilty gear has made you all pussies.
  • SystemSystem Joined: Posts: 508,676 admin
    i dont get what you're trying to correct in his statement?

    5105.14 - 5000 = 105.14

    it sounds like he just said "twice of 1 is 2." and you're saying

    "yes but the formula goes 1 + 1 = 2."

    I wasn't trying to correct anything. First I pointed out that he was making an assumption that isn't entirely accurate, (but the difference is immaterial unless you're talking about a whole lot of money or a really long time). Then I showed how to do the calculation (using this assumption) if you don't have a financial calculator.
  • NightNight pure hot girl cum... Joined: Posts: 505
    Not that it will make a huge difference, but you're making the assumption that the 4.25% annual rate is compounded biannually.

    If you don't have a financial calculator, the formula is FV = PV(1+i)^t
    where FV = Future Value
    PV = Present Value
    i = interest rate
    t = time

    So for this example, with a 5000 present value and 4.25% interest rate:

    FV = 5000*(1.0425)^(.5) = 5105.14

    The formula I used was exactly that.

    I don't know where I implied anything about anything compounded biannually or wrote out the formula I used, but to get 105.14 in interest, I used that exact calculation.
    Chun, Sakura, Cammy, Karin, Morrigan, Lilith, Rose, Mika, Elena, Ibuki, Mai, Yuri, Ruby Heart, Rouge, Son Son, Juli, Juni, Nakoruru, Makoto, etc. - The Ryu intercourse list. He's done em all.
  • SystemSystem Joined: Posts: 508,676 admin
    The formula I used was exactly that.

    I don't know where I implied anything about anything compounded biannually or wrote out the formula I used, but to get 105.14 in interest, I used that exact calculation.

    It's implied in the calculation. Due to the way rates are quoted, 4.25% compounded bianually would not yield the same interest as 4.25% compounded daily. It's a minor theoretical point, and I probably shouldn't have brought it up.
  • CD_VisionCD_Vision Best there ever will be Joined: Posts: 195
    Wow, I can't believe I missed this thread. Hey, someone asked about financial books to read earlier. There is one I can definitely recommend, Benjamin Graham's "The Intelligent Investor". It shows you how to look for stocks that are undervalued, lowering your risk and at the same time increasing your overall returns. Warren Buffett was one of his students. I've read the book and it is the truth. If you purchase individual stocks you should read it.

    This month the new edition of John Slatter's "The 100 best stocks you can buy" also comes out. A really useful guide to finding value stocks, I always keep my copy nearby.
    Author of CD_Vision's Arcade Controls.
    www.darkravenwind.com/cdvision
    My LiveJournal about Investing, Philosophy and classic video games:
    http://cd-vision.livejournal.com/