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.
- Yorkshire Day 29 2
- calculation DTR restriction 112 2
- R&D tax credit claim 552 8
- Agent help line - long queues? 49 2
- Employee and subcontractor 125 1
- Do I need to report this to SOCA 3,750 40
- Is it possible to run/own a UK based business, as a resident of Italy? 146 2
- What are options for non CA firm 3,079 66
- Incorporated when they should not have 341 10
- Accounts Software 264 10
- SMP reclaimable by employer 139 2
- Company Director In Prison 514 12
- Flat rate VAT 174 3
- Have I dropped a major clanger? 2,424 23
- Deduction from Salary 869 23
- National insurance contributions 127 1
- AWeb - download file 229 4
- Director Drawings 274 6
- Accountancy Career 378 5
- Holiday Pay whilst on Mat Leave 164 1
- Property exchange - 8-year legal delay following fall-out 687
- Have you staged yet for auto enrolment? 536
- Cancelled 431
- Cancelled 366
- SAGE Payroll Data for Import to MS Dynamics AX 363
- Probiz 339
- Free-standing washing machine - unfurnished lettings 330
- Phishing emails purporting to be from CIPFA? 244
- Is this UK incapacity benefit taxable in UK or Jersey? 219
- Another HMRC computer glitch? 206