How to Use an Interest Calculator

An Interest Calculator is one that is used by individuals or firms within the financial sector to determine the amount of interest that will be accrued by a person or firm or business to whom they are extending credit in any form.

The Interest Calculator exists in a number of forms. It can be a document with a formula that is embedded within a spreadsheet document like what Microsoft Excel offers; an Interest Calculator can also exist as a web-page, as in the case where financial firms create web-pages that have the interest calculator embedded within them. This assists prospective clients to use these pages to find out what interest they may incur if they decide to use the financial services belonging to that provider.

The Interest Calculator can also be the actual device used to process this interest figure, and in this case, we are talking about a calculator as a mechanical device.

An Interest Calculator can also exist as a written formula, one that is simply worked out mathematically, on paper.

Interest Calculators typically cover two forms of interest: simple interest and compound interest.

In the case of a mechanical device, it can be programmed to work out the different types of interest, that is, simple and compound interest.

In the case of embedded formula based documents like Microsoft Excel spreadsheets or even web-pages with embedded formula, variations can be made for calculating both simple and compound interest as well.

The same variation can occur when it is calculated as a mathematical formula: you can have a mathematical formula for simple interest and a variation of the same for compound interest.

Simple interest involves calculations involving three basic variables: the principal, the time period and the rate of interest for that specific block of time.

Compound interest rates take into account several factors. These include the principle, the rate of interest over a specific period of time, and the time period involved; however, it also includes an important variation: the rate at which the interest amount paid changes over the varying principal over time.

Some compound interest calculations incorporate an allowance for fluctuations like inflation rates as well as bank rates, insurance premiums and things that affect the returns the financial institution gets from the transaction. Compound interest rates can also take into account penalties for early payments or even late payments, as determined by calculations stipulated by the financial institution.

Interest calculators will thus obviously vary in the situations they are used. Simple interest calculations best serve one off payments and are rarely used for the complicated and more long term financial arrangements. Simple interest rates cover calculations or transactions that are usually more informal in nature.

Compound interest rate calculations are more typical of formal business arrangements that are found in insurance firms, banks, credit card companies, mutual fund managers as well as saving scheme firms.

How Do I Get Insurance if My Employer Does Not Offer it?

For employees who work at a company, where health insurance is not offered as a benefit, there are still ways to purchase private health insurance for you and your family. First off, deciding on the level of coverage you need, depending on the health you are in, any risks you may have (due to family history of illness), and the overall health that the members of your family are in, will help you determine the level of coverage you need. The next thing to consider is looking for the right health insurance companies. There are both nationwide coverage policies, as well as small local family owned health insurance companies. So, choosing the policies, getting quotes, and seeing what levels of coverage each offers, depending on the level of coverage you are seeking, will help you determine which company to go with.

You also have to consider the coverage, what doctors are covered, what hospitals are covered, medications, prescriptions, and all other aspects related to the health insurance policy, when you are choosing a plan. For the most part, smaller companies might be a bit cheaper, but they do not cover the large network of doctors, nor do they offer discounts on medication. So, it may pay off for you to consider a larger, nationwide company, that does cover all doctors, in order for you to have the coverage you need, and still save. Also, when looking at the co pay, it might be beneficial for you to pay a higher co pay, when you do go in to the doctor, in order to find a cheaper policy for your insurance package. Another thing to consider is working with the right health insurance agent. The larger, nationwide companies, are usually going to offer you an agent to help you choose a policy. This will ensure that you are going to get the coverage you need, for the lowest price to you on a monthly basis.

It is possible to find an affordable health insurance policy, for you and your family, even if your employer does not offer coverage. The more willing a purchaser is to do the research, to contact insurance companies, and to take the time to compare rates, the more likely it is that they are going to find that affordable coverage. So, even though it might not be as cheap as if you purchased from a group plan with your employer, it is still very possible to find a plan that you can afford, and which offers you the coverage you need and are looking for, when you are choosing which insurance company to go with, for your health insurance needs, and for those needs of your family.

Five Smart Financial Moves to Make before Switching Jobs

When switching jobs, it is important to be pragmatic when evaluating the new opportunity before you. Outlined below are some aspects of the new situation that you can examine carefully to make sure the new switch works out well for you.

Your New Contract

It would be particularly wise to only give in notice at your old job after you have received and carefully examined the contract for the new position you are being offered. Make sure that at the very least you seek a legal opinion on the validity of the contract, and whether the terms as expressed within it are a reflection of your understanding of the document. This includes remuneration, the terms under which you may leave that position, non-disclosure clauses as well as any other terms that may affect your future career and thus, your future financial stability.

Net Income

Ensure that you have correctly understood the calculations by which you arrive at your net income in your new job. This is a discrepancy that a lot of new employees make, and one that some employers do not take the time to point out, which results in your receiving significantly less than you had initially understood you were going to get as your net income.

Benefits

Closely examine the benefits offered by the new position and note how they impact on your lifestyle. Do you have to travel further than you did for your original job? Does the cost-benefit analysis work out? Do you get paid overtime? Do you have the same health benefits? Are aspects important to your performance, like an entertainment allowance for a high-end marketeer, included in your benefits package? Carefully analyze your benefits terms to ensure they do not put you in a losing position.

Employee Schemes

Examine what schemes are on offer at the new job and take advantage of them. These often vary, and can include stock options, saving schemes, and things of that nature which can be vital to ensuring your medium to long term financial stability.

Account Management

It may be wise for you to look into who manages the financial accounts for the firm you are joining, at a banking level. It puts you on friendlier footing if you are banking with the same bank that handles your employer’s accounts, especially if you are joining a stable firm. Credit is significantly easier to access, and transactions are of course much easier to follow up on. Along side this, you would do well to ensure that you continue with any saving activity that you may have been carrying out at your previous position, or at the very least, start this valuable habit. If disbursements from your monthly income were being distributed between an expense and savings account, ensure the same process is maintained when taking on the new job.

What are FHA Loans?

An FHA loan is one that is backed or supported by the federal government. However, this is not the only distinction. FHA stands for Federal House Administration, and an FHA loan is put in place when a lender approved by the Federal House Administration provides the insurance required to cover a mortgage-based loan. As such, the FHA insures the loan at a rate of about 1% which is the Minimum Insurance Premium, and the FHA-approved lender covers the cost of the insurance, before providing the loan to the borrower.

FHA Loans

The scheme was developed to assist borrowers who were not able to cover insurance premiums to access mortgage loans and was developed during the Great Depression of the 1930s. It has however evolved to cover different aspects of the housing and real estate markets and its also a competitive type of mortgage insurance financing, while still retaining it’s original objective of protecting both the underprivileged as well as the FHA-approved lenders who are providing the loan.

If you are interested in getting an FHA loan, the first and obvious step would be to find out which financial or credit institutions are approved by the Federal House Administration; this information is available from the FHA and federal finance databases. There are a diverse number of lending institutions that are FHA-approved, and so it would be wise to look through their various terms and conditions and see which best suit your needs.

The financial institution or firm that is approached for the loan then does an assessment of its prospective customer, including past debt history as well as current income in relation to the loan facility they are seeking. After this, the assessment puts together a repayment proposal that the prospective borrower examines.

The FHA loan traditionally offers mortgage loans and refinancing at interest rates than you will find elsewhere and is also able to cover credit worthy individuals who do not meet the usually stringent expectations of other non-FHA approved lenders. For instance, a blood relative will be allowed to co-sign for the loan even though they may not be living within the residence of the premises being mortgaged as a form of guarantor.

Accessibility is also insured with low initial deposits, with some FHA-approved loans enabling the home-buyer to deposit as low as 3.5% in the initial acquisition process.

Apart from being more easily accessible to people that cannot afford the usual mortgage financing, FHA loans also are adjustable in terms of their rates, particularly during periods of low market interest rates, thus passing on the benefits of lower interest to the borrower.

It also allows for a combined interest rate system on the loan, where for a certain period the borrower is paying back the loan against a fixed interest rate for about three to five years, and after which, the interest can follow market fluctuations. This is referred to as the Hybrid Adjustable Rate.

FHA loans are thus an important aspect of the mortgage financing industry, helping provide the less financially privileged with access to mortgage financing while also acting as a buffer to strictly commercial enterprises in the market place.

My First Car Payment

One of the most important decisions a person will ever make is the purchase of a car. There are so many things to consider when purchasing a vehicle. Of course its lots of fun when deciding color, make, model, interior and features but there are some difficult decisions to make when buying a car. First, consider the required down payment and the monthly payments. Always have the car payment you desire in mind as well as the maximum amount that you can afford to pay. Because the sales process can get pretty intense you should have these figures firmly planted prior to going shopping. You don’t want to end up with a vehicle you neither want nor can afford.

Buying a car
Is buying a car right for you?

When considering the car payment also consider due dates as they relate to your pay dates. Some finance companies will require payments correspond to paydays while others may require the 1st payment due 30 days after the contract is initiated. The next important detail to consider is the method of payment when making the car payments. Most finance companies offer several different payment options. Among the options are usually walk in payments, online payments, pay by phone and direct debit options. Remember that the method of payment you commit to should be one that is available to you consistently to avoid late payments.

Most car dealers have a network of finance companies that they work with closely. Once the loan is approved remember to take your time and read the contract completely prior to signing. The contract is a legally binding document effective the moment after you sign. Take the time to research any points and facts that you are not familiar with. There are representatives available at the finance company that can further explain the contract. Look up the value of the car with the options you choose to make sure that the total cost of the vehicle with the interest is not more than the car is worth. Sometimes companies have an option to lease a vehicle instead of buying it. In some cases this may be a wiser decision. People usually base their decision to lease based on the amount of wear and tear they traditionally put on a vehicle. Also, it may be wise to take into consideration the amount of travel and what the primary use will be for the vehicle.