Funding Circle - how to calculate 'average gross yield'?
Hi, I'm looking into various sources of investment income.
I've joined Funding Circle personally to try it out, prior to proposing it to my employer.
I've struggled to understand how the 'average gross yield' is arrived at?
For, say, a £30,000 investment in Funding Circle repaid over 36 monthly instalments, which pays £4,376.40 in total interest over that time, how do you calculate the 'average gross yield', which is stated as being 9.1%?
Also, I've created a spreadsheet repayment summary, laying out the 36 monthly instalments using the sum of digits method to understand how the returns stack-up year-on-year. I now want to build in the continual reinvestment of all repaid loan parts to work out what the overall return adds up to? Has anyone else tried to do this or can anyone point me in the direction of existing investment formulae to calculate this? Or suggest what the ultimate annual return % might be in doing this?
I'm also now looking into Treasury Gilts and Corporate Bonds - can anyone offer me advice re. how to try to get the best mix of investments?
The fixed rate bonds/building society a/c business deposits I've so far seen range up to 2.11% for a deposit of up to £85k. I'm sure I can beat that several times over without taking tooo much risk... any suggestions?
Many thanks in advance.
- Director appointment not valid - any observations? 108 6
- Homing sandwiches 399 10
- CT600 58 2
- signature required 462 21
- Director Personal Bank Account in company's books 492 9
- How do I undo the work of a Macro in Excel 164 5
- Settlement discount 73 3
- A number of Clearbooks VAT return issues! 155 2
- VAT on hotel payments received in advance 101 2
- Pratice Management Software 67 1
- Norwegian p45, which UK Tax return does it go into 195 10
- Left UK in 2006 but did not declare rental income since 2009 111 1
- VAT rate charged by surveyor 179 2
- Related Party Transactions 106 2
- UK resident receiving USA pension 94 1
- EU eservices VAT change imminent 465 9
- Sage payroll alternatives 755 13
- More AE! 761 17
- Web sites 247 3
- ethical- to continue to act or not? 608 13
- Auto enrolment excuses 1,234
- Feedback on accounts production software for IFRS 810
- Add T&Cs to Sales Order in Sage 515
- Digita Hosted Software 334
- Credit where credit's due....... 307
- Buying goods in US and selling them to company in US 234
- Flat rate VAT- other income calculation 187
- TheTax Donut 178
- Corporation Tax return - more than one trade 157
- Double taxation relief - same income, different individual 156