Pub. Date:
McGraw-Hill Professional Publishing
The Personal Finance Calculator: How to Calculate the Most Important Financial Decisions in Your Life / Edition 1

The Personal Finance Calculator: How to Calculate the Most Important Financial Decisions in Your Life / Edition 1

by Esme E. Faerber
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Today's most clear-cut guide for understanding and making everyday financial decisions

Is it better to buy or lease a car? How does one calculate an investment return? For that matter, what exactly is an investment return? The Personal Finance Calculator provides noncomplex tools and calculations for assessing current personal wealth, determining how much debt is too much debt, understanding credit card interest rates, and more.

Written by Esme Faerber, a McGraw-Hill author renowned for simplifying complex finance topics and explaining their use, this clear, concise book explains simple steps for getting one's financial life in order and saving money over both the short and long term. Readers will learn how to:

  • Keep investment costs from undercutting overall returns
  • Use the popular "Rule of 72" to estimate investment growth
  • Determine how much money they will need for retirement

Product Details

ISBN-13: 9780071393904
Publisher: McGraw-Hill Professional Publishing
Publication date: 03/11/2003
Edition description: First Edition
Pages: 224
Product dimensions: 8.50(w) x 8.90(h) x 0.60(d)

About the Author

Esme Faerber, C.P.A. is professor of business and accounting at Rosemont College. She is the author of numerous popular books for individual investors, including All About Stocks and All About Bonds, and Bond Mutual Funds.

Table of Contents

Part 1Assessing Your Current Wealth
Financial Calculator
1How to Determine Your Net Worth3
2How to Determine a Cash Inflows and Outflows Statement8
3How to Formulate a Budget12
4Time Value of Money and What It Can Do for You20
5Simple Interest and How to Calculate It22
6Compound Interest and How to Determine Future Value23
7What You Need to Know About Nominal Versus Effective Interest Rates and How to Calculate the Effective Rate30
8Present Value and How to Calculate It33
9Annuities and How to Calculate Them37
10How to Determine the Amounts Needed to Fund Your Objectives52
11How to Reconcile Your Checking Account61
12How to Prepare Your Records for Your Tax Accountant68
Part 2Managing Your Personal Wealth--Debt
Financial Calculator
13Determine Your Debt Capacity75
14How to Determine the Best Source of Credit77
15How to Determine the Annual Percentage Rate Costs of Using Credit Loans81
16How to Determine the Rate of Interest on Your Credit Cards90
17How to Manage Your Debt94
18How Much of a Mortgage Can You Afford?99
19How to Calculate Your Monthly Mortgage Payment103
20How to Determine Your Mortgage Balance107
21Determine Your Mortgage Balance When Additional Principal Payments Are Made111
22Adjustable Rate Mortgages and How They Work114
23Which Type of Mortgage Should You Choose?121
24When Should You Refinance Your Mortgage?125
25Should You Rent or Buy a House?127
26What You Should Know About Leasing a Car and How a Lease Works131
27Should You Buy, Lease, or Finance Your Car?136
28How to Create a Simple Interest Loan Schedule142
Part 3Managing Your Personal Wealth--Investments
Financial Calculator
29Determine Your Investment Objectives149
30Determine Your Risk Tolerance152
31How to Allocate Your Investments158
32How to Determine Your Equity Style in the Selection of Individual Stocks165
33How to Determine Which Types of Bonds to Buy for a Portfolio171
34How to Rebalance Your Portfolio175
35The Rule of 72 and How to Use It to Determine How Long It Will Take to Double Your Money179
36How to Assess and Balance Risk and Return in the Choice of Different Investments180
37How to Calculate a Simple Rate of Return for Stocks and Bonds186
38How to Determine a Rate of Return for a Mutual Fund190
39How to Determine the Yield on Treasury Bills193
40How to Determine the Purchase and Selling Price of Treasury Bills197
41How to Buy and Sell Treasury Securities Directly from the Federal Reserve201
42How to Convert Municipal Bond Yields to Before-Tax Yields207
43Duration and How It Can Help You in the Choice of Bonds for Your Portfolio211
44How to Value Bonds217
45How to Value Common Stock220
46How to Determine the Growth Rate of a Stock226
47How to Analyze and Evaluate Your Common Stocks229
48How to Choose a Mutual Fund246
49How to Determine the Tax Consequences of Buying and Selling Shares in a Mutual Fund254
50How to Determine the Average Cost in Dollar Cost Averaging259
Part 4Planning for Your Future
Financial Calculator
51How to Determine Your Future Financial Needs and How to Fund Them265
52How to Determine How Long Your Money Will Last in Retirement and the Amount of the Payment in a Systematic Withdrawal Plan272

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