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Compound Interest: What It Is, Formula, Examples

Savings Corner

When it comes to calculating interest, there are two basic choices: simple and compound. For example, if you invest $1,000 at 5% simple interest for 10 years, you can expect to receive $50 in interest every year for the next decade. In the investment world, bonds are an example of an investment that typically pays simple interest.

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How to Calculate Home Equity

Savings Corner

Here’s how to calculate the equity in your home. How to calculate the equity you have in your home Key terms Home equity Your equity is basically the difference between your home’s value and the amount you owe on your mortgage (and any other loans against the home). Using our example above, that’s 0.8 Here’s how.

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Compound Interest Calculator – NerdWallet

Savings Corner

Try your calculations both with and without a monthly contribution — say, $5 to $200, depending on what you can afford. This savings calculator includes an example rate of return. Additional information can be found at [link] CIT Bank Platinum Savings Min. But remember, that’s just an example.

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Amortization Schedule Calculator – NerdWallet

Savings Corner

What’s behind the numbers in our mortgage amortization calculator An amortization calculator enables you to take a snapshot of the interest and principal (the debt) paid in any month of the loan. NerdWallet’s mortgage amortization schedule calculator can help you do all of those things. This is amortization at work.

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Simple Savings Calculator | Bankrate

Savings Corner

Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence.

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How Much House Can I Afford? Affordability Calculator

Savings Corner

To calculate how much house you can afford, we take into account a few primary items, such as your household income, monthly debts (for example, car loan and student loan payments) and the amount of savings available for a down payment. In the above example, that would allow a mortgage payment of $1,260 to achieve a 28% DTI.

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Refinance Calculator | Bankrate

Savings Corner

The break-even point is calculated by adding up all refinancing closing costs and figuring out how many years it will take you to make up those costs with the savings from your new mortgage payment compared to your previous one. Where do I find more information on mortgage refinancing?