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Mortgage Affordability Calculator...
If you are considering buying a home you can begin your search on this free
MLS service. Before beginning your search it is
a good idea to prequalify for a
Mortgage Loan with a broker or lender. Local individuals can also find a
California Real Estate agent through
this company...it would also be a good idea to utilize this free
Real Estate Home Values service to
find out the value of your existing home prior to selling it. Local home buyers can begin their quest
with the assistance of the NorcoRealEstateGuide, located at this page:
Norco California Real Estate .
Local home buyers can obtain their prequalification through any
California Mortgage Company , simply
request a quote. We recommend that citizens of Arizona begin their search for
Chandler AZ Real Estate by
doing an online search. Those looking for
Riverside California Real Estate
can use this agency to gather valuable information related to the home buying and selling process or,
if you are purchasing
Chandler Real Estate , then
begin your investigation here. Investors are advised to use a low-cost
Futures Broker to save money
on their commissions. We sincerely hope that you appreciate the quality of service in all of our
real estate and
morgage lending services.
There are three problems with simple interest.
The time periods used for measurement can be different, making comparisons wrong. You cannot say the 1%/day credit card interest is 'equal' to a 365%/year GIC.
The time value of money means that $3 paid every six months hurts more than $6 paid only at year end. So you cannot 'equate' the 6% bond to the 6% GIC.
When interest is due, but not paid, it must be clear what happens. Does it remain 'interest payable', like the bond's $3 payment after six months? Or does it get added to the original principal, like the 1%/day on the credit card? Each time it is added to the principal it 'compounds'. The interest from that time forward is calculated on that (now larger) principal. The more frequent the compounding, the faster the principal grows, and the greater the interest amount is.
Compound interest: In order to solve these three problems, there is a convention that interest rates will be disclosed as if the term is one year and the compounding is yearly. The discussion at compound interest shows how to convert to and from the different measures of interest.
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