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For most of the population, math is very much a love-it-or-hate-it subject. For all the math lovers out there, however, there’s a great new tool that allows you to automatically calculate compound interest. The interest calculator is a sleek new, intuitive web application that allows users to quickly and easily compute both simple and compound interest.
The subject of compound interest is an exciting one if you are talking about a bank account. When you are applying for a car loan or a mortgage, however, it is not as much fun. A compound interest calculator will show you the realities you face as holder of a substantial loan.
There are some items which are simply too expensive to pay for outright. These include homes, cars, university enrollment fees, or even braces for the kids. Depending on how much money you need and your current wages, a long term loan might be the only reasonable option for you. Interest added in this way is calculated against a new sum at each scheduled period, whether that is annually, semi-annually, or monthly. Interest applies to what is left of the loan. Although you pay more in the long run and can often feel like a hamster on a wheel when all you do is chase down interest, this does not always have to be the case.
For one thing, compound arrangements do not have to take you a long time to clear. Establish a quicker pay scheme from the outset. Certain institutions also allow customers to make extra payments without being penalized, or will even permit early completion for a small fee. Even this price will be less than the interest you were paying. Meanwhile, when times are tough you get to keep your car or house (and Junior keeps his newly straightened teeth) without having to worry about paying your loan off. Take a breather until your financial situation improves, invest in a high speed VPN and check out your options on other sites.
For the most part, banks benefit from this arrangement since it is hard to ever pay off compound interest on a five or six figure principal at a slow, steady rate. You really see this when you use a calculator. These are hosted by a number of websites that discuss mathematics and financial matters. Give the calculator your loan amount, rate of interest, the number of years you expect to be paying, and the fee schedule. With these numbers the calculator will tell you how much you need to pay monthly to complete this loan entirely.
Use this to ascertain the viability of your financial plans. Establish whether you can purchase a Mustang or a Honda. Decide whether or not to invest in a brand new model or a used one (remembering, of course, that a car depreciates in value from the minute you own it, unless it is a highly maintained classic). Decide whether you can afford a house with a Jacuzzi tub and bedrooms for all of the kids, or a townhouse where the kids will have to sleep in the tub. Compare your likely outgoings including utility bills, food, gas and other fees plus your new mortgage against the incomings you expect to be receiving. A compound interest calculator might influence a decision to continue renting for a while, or reassure you that a bigger house is accessible in the near future if you make some budget cuts.
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