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  • Financial Question...I cannot remember how to do this at all!  :)

  • Somehow, we still tolerate each other. Eventually this will be the only forum left.
Somehow, we still tolerate each other. Eventually this will be the only forum left.
 #18276  by Lox
 Wed Aug 18, 2004 4:20 pm
<div style='font: bold 9pt ; text-align: left; '>Say I had $120 on a credit card that had a 14.99% annual interest rate and the money was never paid off. It just kept sitting there month after month for 57 months.

What would be the final amount after the 57 months and how much interest would there be?

I will try this in Excel but I know someone (like Flip) will know how to find this answer.</div>
 #18277  by Lox
 Wed Aug 18, 2004 4:29 pm
<div style='font: bold 9pt ; text-align: left; '>From what I gathered, the person would owe $455,000 at the end of the 5th year.

I was talking to someone about credit card debt and we could not remember how to figure this out. Did I do it right?</div>
 #18279  by Lox
 Wed Aug 18, 2004 4:47 pm
<div style='font: bold 9pt ; text-align: left; '>I think the final amount would be $249.62. I forgot to divide the annual interest by 12. Is that right now?</div>
 #18280  by Flip
 Wed Aug 18, 2004 5:52 pm
<div style='font: 10pt Tahoma; text-align: left; '>Year Amount Rate Interest
1 120.00 14.99% 17.99
2 137.99 14.99% 20.68
3 158.67 14.99% 23.78
4 182.46 14.99% 27.35
5 209.81 14.99% 31.45
Total 241.26 121.26

If you wanted it for only 56 months instead of 60 you'd have to prorate the rate for the last year by multiplying it by 8/12:

1 120.00 14.99% 17.99
2 137.99 14.99% 20.68
3 158.67 14.99% 23.78
4 182.46 14.99% 27.35
5 209.81 9.99%* 20.97
230.77 110.77

* 14.99 x (8/12) = 9.99




^_^</div>
 #18281  by Flip
 Wed Aug 18, 2004 5:56 pm
<div style='font: 10pt Tahoma; text-align: left; '>Year Amount Rate Interest
1 120.00 14.99% 17.99
2 137.99 14.99% 20.68
3 158.67 14.99% 23.78
4 182.46 14.99% 27.35
5 209.81 14.99% 31.45
Total 241.26 121.26

If you wanted it for only 56 months instead of 60 you'd have to prorate the rate for the last year by multiplying it by 8/12:

1 120.00 14.99% 17.99
2 137.99 14.99% 20.68
3 158.67 14.99% 23.78
4 182.46 14.99% 27.35
5 209.81 9.99%* 20.97
230.77 110.77

* 14.99 x (8/12) = 9.99




^_^</div>

 #18282  by Flip
 Wed Aug 18, 2004 6:56 pm
<div style='font: 10pt Tahoma; text-align: left; '>oops, you said 57 months, not 56... well you get the idea.</div>

 #18283  by Zeus
 Wed Aug 18, 2004 8:11 pm
<div style='font: 9pt ; text-align: left; '>You mulitply $120 by (1 + (14.99/12) ) to the power of 57</div>

 #18284  by Zeus
 Wed Aug 18, 2004 8:12 pm
<div style='font: 9pt ; text-align: left; '>You forgot about compouding the interest monthly instead of yearly, as credit cards do</div>
 #18286  by Flip
 Thu Aug 19, 2004 7:54 am
<div style='font: 10pt Tahoma; text-align: left; '>* rate = .1499/12 = .012491667

month amount rate interest
1 120.00 0.012491667 1.50
2 121.50 0.012491667 1.52
3 123.02 0.012491667 1.54
4 124.55 0.012491667 1.56
5 126.11 0.012491667 1.58
6 127.68 0.012491667 1.59
7 129.28 0.012491667 1.61
8 130.89 0.012491667 1.64
9 132.53 0.012491667 1.66
10 134.19 0.012491667 1.68
11 135.86 0.012491667 1.70
12 137.56 0.012491667 1.72
13 139.28 0.012491667 1.74
14 141.02 0.012491667 1.76
15 142.78 0.012491667 1.78
16 144.56 0.012491667 1.81
17 146.37 0.012491667 1.83
18 148.20 0.012491667 1.85
19 150.05 0.012491667 1.87
20 151.92 0.012491667 1.90
21 153.82 0.012491667 1.92
22 155.74 0.012491667 1.95
23 157.69 0.012491667 1.97
24 159.66 0.012491667 1.99
25 161.65 0.012491667 2.02
26 163.67 0.012491667 2.04
27 165.71 0.012491667 2.07
28 167.78 0.012491667 2.10
29 169.88 0.012491667 2.12
30 172.00 0.012491667 2.15
31 174.15 0.012491667 2.18
32 176.33 0.012491667 2.20
33 178.53 0.012491667 2.23
34 180.76 0.012491667 2.26
35 183.02 0.012491667 2.29
36 185.30 0.012491667 2.31
37 187.62 0.012491667 2.34
38 189.96 0.012491667 2.37
39 192.33 0.012491667 2.40
40 194.74 0.012491667 2.43
41 197.17 0.012491667 2.46
42 199.63 0.012491667 2.49
43 202.13 0.012491667 2.52
44 204.65 0.012491667 2.56
45 207.21 0.012491667 2.59
46 209.80 0.012491667 2.62
47 212.42 0.012491667 2.65
48 215.07 0.012491667 2.69
49 217.76 0.012491667 2.72
50 220.48 0.012491667 2.75
51 223.23 0.012491667 2.79
52 226.02 0.012491667 2.82
53 228.84 0.012491667 2.86
54 231.70 0.012491667 2.89
55 234.60 0.012491667 2.93
56 237.53 0.012491667 2.97
57 240.49 0.012491667 3.00
Total 243.50 123.50

Spreadsheets are fun</div>

 #18288  by Zeus
 Thu Aug 19, 2004 10:58 am
<div style='font: 9pt ; text-align: left; '>This is the type of utterly useless knowledge we get as CA's/CPA's :-)</div>
 #18292  by Flip
 Thu Aug 19, 2004 6:41 pm
<div style='font: 10pt Tahoma; text-align: left; '>The CPU partner guy at my firm, though, hates MS and so we use Lotus 123 and Wordperfect in addition to MSOffice at my job. I hate Lotus compared to Excel.

On that note, i got a job with a bigger firm and will only be at the one i am at for another 2 weeks (i turned in my 3 weeks last Friday). The pay is a lot better and i will be doing more interesting stuff. Hopefully it works out!</div>

 #18296  by SineSwiper
 Thu Aug 19, 2004 10:18 pm
<div style='font: 10pt "EngraversGothic BT", "Copperplate Gothic Light", "Century Gothic"; text-align: left; '>I thought it was compounded infinately, to the smallest unit of time.</div>

 #18303  by Zeus
 Fri Aug 20, 2004 2:08 pm
<div style='font: 9pt ; text-align: left; '>No, they charge you for the month, that becomes your new balance, and you go from there, computed daily (so, if you pay 4 days into the month, you still owe 4 days of interest on the full balance, and the rest of the month on the remainder)</div>

 #18304  by Zeus
 Fri Aug 20, 2004 2:10 pm
<div style='font: 9pt ; text-align: left; '>I'm in a medium-sized firm, so I'm not spending 3 months on AR, but I'm also not doing a whole bunch of small retail outlets either</div>

 #18305  by Flip
 Fri Aug 20, 2004 4:55 pm
<div style='font: 10pt Tahoma; text-align: left; '>Yeah, that was one advantage of my small firm, i go to see the whole audit process, work on tax returns, and do other stuff. The new firm is 200 people (other was 30) so it is larger but still not that large, i think i'll like it.</div>

 #18309  by SineSwiper
 Fri Aug 20, 2004 7:53 pm
<div style='font: 10pt "EngraversGothic BT", "Copperplate Gothic Light", "Century Gothic"; text-align: left; '>Bah...thinking of bank loans.</div>

 #18310  by Zeus
 Sat Aug 21, 2004 4:42 pm
<div style='font: 9pt ; text-align: left; '>My office has about 60 audit/tax/QAS staff, an insolvency office, and about 20 admin staff. We're the flagship office of the 6th largest firm in Canada (yes, we're international as well), so it's a great mix for me</div>
 #18328  by Flip
 Sun Aug 22, 2004 6:27 pm
<div style='font: 10pt Tahoma; text-align: left; '>I'm excited to get in there, the next 2 weeks will be long weeks as i finish up my work at my current firm.

At Beers & Cutler, the new job, i'll be moving away from audit and tax (which is basically all the small firm does) and into what B&C call their Outsoucing and Consulting division. Think controller by the hour kinda stuff with also financial statement analysis, systems implementation, and internal controls reworking kind of engagements. I'm glad i got to audit for a little over a year, for the experience, but i wont be sad to leave it behind as i found it kind of boring. There was also little sense of accomplishment since 90% of the time we would sweep in, audit, make no adjustments, and sweep out with basically nothing to show for it besides financial statements that i'm sure people would merely glance at then put aside. Most of our clients only got audits because it was in their bylaws and didnt give a shit one way or the other. Atleast you know with public companies that your statements will get read by investors, but we dont have any public clients; only private ones where the statements would only get read by a board of directors hardly any of which had enough financial schooling to even understand them.

I did like doing taxes, but the quality control procedures at my firm are tedius since we had to do a lot of reconciliations, double checks, and long annoying check lists. It'll be a little sad to not do those anymore, but i figure i can continue to educate myself on the topic.</div>

 #18383  by Zeus
 Thu Aug 26, 2004 4:23 pm
<div style='font: 9pt ; text-align: left; '>Those are the world's Big 4 :-)</div>

 #18387  by Flip
 Thu Aug 26, 2004 7:00 pm
<div style='font: 10pt Tahoma; text-align: left; '>yeah i realized that once i posted, of course they are all international... just didnt feel like gambling with the edit button since it erases my posts sometimes. (their HQ are all in the US, though)</div>

 #18396  by SineSwiper
 Fri Aug 27, 2004 6:59 am
<div style='font: 10pt "EngraversGothic BT", "Copperplate Gothic Light", "Century Gothic"; text-align: left; '>The older message can still be undeleted by you if it doesn't happen to work.</div>