NL1960:


I = P * T * R / (number of days in the year)

I - Interest to be earned
P = Principal
T = Tenor
R = Rate in percentage
number of days in the year = 365 or 366(Leap Year)

P = 1,000,000 (Assume you are investing N1m)
T = 359
R = 19.50 = 19.50/100 = 0.195

I = (1,000,000 * 359 * 0.195) / 366 = 191,270.49

So your Interest is 191,270.49

GTB should debit you with: 1,000,000 - 191,270.49 = 808,729.51

NB: Charges are not included in this explanation.

Note: Different banks have different ways of passing the entries. Some banks will debit you with N1m and then credit you with 191,270.49. At maturity, you are now credited with N1m.

Pls do calculation lets say 14% for 91 days. Principal of 3m

cutedharmee:

Pls do calculation lets say 14% for 91 days. Principal of 3m

I = ( P * T * R )/366

I = ( 3,000,000 * 91 * 0.14 )/366 = 104,426.23

THANK YOU.🙏 THEY'RE RIGHT I GUESS.

MEANWHILE DO YOU UNDERSTAND WHY THE BALANCE IN MY SMS ALERT WILL BE DIFFERENT FROM THAT IN MY INTERNET BANKING APP TO THE TUNE OF 4 TO 5K DIFFERENCE SOMETIMES? THIS IS ESPECIALLY SO WITH UNION AND GTB.
IT'S CONFUSING. AFTER CALCULATING I'LL NOTICE THAT ONE IS MORE ACCURATE. WHAT KIND OF THE MORE YOU LOOK THE LESS YOU SEE IS THAT. PLS ANY EXPERIENCE AND OR EXPLANATION FOR THIS? I NO WANT TO THEY MEET THIS BANK PEOPLE BEFORE I CONFIRM FROM OTHERS SO I CAN KNOW IF IT'S WORTH ENGAGING THEM OR NOT.

NL1960:


I = P * T * R / (number of days in the year)

I - Interest to be earned
P = Principal
T = Tenor
R = Rate in percentage
number of days in the year = 365 or 366(Leap Year)

P = 1,000,000 (Assume you are investing N1m)
T = 359
R = 19.50 = 19.50/100 = 0.195

I = (1,000,000 * 359 * 0.195) / 366 = 191,270.49

So your Interest is 191,270.49

GTB should debit you with: 1,000,000 - 191,270.49 = 808,729.51

NB: Charges are not included in this explanation.

Note: Different banks have different ways of passing the entries. Some banks will debit you with N1m and then credit you with 191,270.49. At maturity, you are now credited with N1m.

Risingcash94:
THANK YOU.🙏 THEY'RE RIGHT I GUESS.

MEANWHILE DO YOU UNDERSTAND WHY THE BALANCE IN MY SMS ALERT WILL BE DIFFERENT FROM THAT IN MY INTERNET BANKING APP TO THE TUNE OF 4 TO 5K DIFFERENCE SOMETIMES? THIS IS ESPECIALLY SO WITH UNION AND GTB.
IT'S CONFUSING. AFTER CALCULATING I'LL NOTICE THAT ONE IS MORE ACCURATE. WHAT KIND OF THE MORE YOU LOOK THE LESS YOU SEE IS THAT. PLS ANY EXPERIENCE AND OR EXPLANATION FOR THIS? I NO WANT TO THEY MEET THIS BANK PEOPLE BEFORE I CONFIRM FROM OTHERS SO I CAN KNOW IF IT'S WORTH ENGAGING THEM OR NOT.

You might need to take it up with them.

Some might show 'Current Balance(Ledger Balance)' while some will show 'Available Balance'.

Nakedman:
Here you go!. 21.24% here.

Mmm. Juicy 😁

X

NL1960:


I = ( P * T * R )/366

I = ( 3,000,000 * 91 * 0.14 )/366 = 104,426.23

104000 on 3million for 3months?
God forbid
I'll rather go do business with my money

cutedharmee:

104000 on 3million for 3months?
God forbid
I'll rather go do business with my money

..
Tell us the business that will yield More than that

cutedharmee:

104000 on 3million for 3months?
God forbid
I'll rather go do business with my money

If you do business with it and make 500k in 3months,
1. You took some risk, cos things could have gone south.
2. You put in your time and intellect for three months, after paying yourself for the time and intellect invested, the real profit may now be less than 100k, but most people prefer to discount tge cost of their efforts and still count the profit as 500k.


TBiLLs are: risk free, efforts-free.
No offloading goods, taking customers insults, collecting fake notes, no dragging customer with your neighbor 😁😁


This is not saying people should not do business but rather only do Tbills, that's not the suggestion at all, the post is about making fair comparisons between investment returns.

heavenisreal18:
..
Tell us the business that will yield More than that

I know people who trade grains with c. 15% markup.

Wheat for instance, 3 tons @2.65m was sold in bags of 100kg at 110k per bag to gross N3.3m

cutedharmee:

Pls do calculation lets say 14% for 91 days. Principal of 3m

Secondary market for similar Tenure should be more than 14%

awesomeJ:


If you do business with it and make 500k in 3months,
1. You took some risk, cos things could have gone south.
2. You put in your time and intellect for three months, after paying yourself for the time and intellect invested, the real profit may now be less than 100k, but most people prefer to discount tge cost of their efforts and still count the profit as 500k.


TBiLLs are: risk free, efforts-free.
No offloading goods, taking customers insults, collecting fake notes, no dragging customer with your neighbor 😁😁


This is not saying people should not do business but rather only do Tbills, that's not the suggestion at all, the post is about making fair comparisons between investment returns.

Nicely put. I see it as money making more money while you sleep or focus on other things

Odunharry:

Secondary market for similar Tenure should be more than 14%

I actually thought the 14% is suppose to be on each million . Like 14% of 1million which equals 140,000 multiplied by 3 which is the principal interest

heavenisreal18:
..
Tell us the business that will yield More than that

Oga i stay here in the North and when I tell u there are businesses that'll yield that, I mean it.

Odunharry:

Nicely put. I see it as money making more money while you sleep or focus on other things

Exactly

cutedharmee:

I actually thought the 14% is suppose to be on each million . Like 14% of 1million which equals 140,000 multiplied by 3 which is the principal interest

It's actually 140,000 multiplied by 3.

What's is not accurate is you thinking the 140,000 comes on 1m if you invest for 91 days.

The 140,000 on 1 million only comes when you hold for a full year, then on 3 million you would actually get 140,000 multiplied by 3.


However, when you only hold for 3months which is only a quarter, what you'll get is only a quarter of 140,000. That's 35,000 on 1 million.

Then on 3million, you'll get 35,000 multiplied by 3 which is 105,000.


This issue of thinking annualized rate sare flat rates is actually quite common, There have even been a few folks who thought the rates mean 14% every month, maybe folks hoping to recover their MMM losses from NTB 😁😁

cutedharmee:

104000 on 3million for 3months?
God forbid
I'll rather go do business with my money

@cutedharmee, business is a form of investment, NTB is another form of investment likewise others like stock or real estate. The main purpose of these investments is to make profit or returns. One is not better than the other it all depends on the investor's level of risk tolerance, efforts put in to get the returns, safety of both capital and the intended returns and many other factors.

Returns on two investment can be better compared when all factors affecting or surrounding them are the same.

Dangote is a business man but he's an investor in some banks that he's not managing but still get returns effortlessly which may not be the same compared with what he gets in Surgar or oil refinery.

Making, managing and growing wealth requires one to be involved in different forms of investment categories which could be low risk, medium risk or high risk. As the usual saying goes the higher the risk the higher the returns and vice versa.

Ok thank you very much Freeman67. This was quite helpful

freeman67:


You have added rate and tenure. What is not there is the principal and as such you may not get your desired response.

However, let me just try it with my crude way of calculation I use. I don't use excel and I also don't know any complex maths for it but if I want to invest say about 1m with that tenure and rates, I will be expecting about N1,228,579.66. This is how I do mine.

Below is my calculation.

1,000,000 ÷ 100 x 19.50 ÷ 365 x 359 = 191,794.521

The bolded above is the upfront interest you are supposed to get originally.

191,794.521 ÷ 100 x 19.50 ÷ 365 x 359 =
36,785.1382

The bolded above is the interest to be realised from the reinvested interest.

Add the principal and 2 of the bolded above together. You will arrive at my response above.

Thank you 🙏

alezzy13:


@bolded, no I have always collected my internet upfront. Usually they will debit the amount and processing fees, and leave the interest. Then at at maturity, the principal is paid.

If you not satisfied with their service you can try customer care line.

I appreciate this. Thanks 🙏

NL1960:


I = P * T * R / (number of days in the year)

I - Interest to be earned
P = Principal
T = Tenor
R = Rate in percentage
number of days in the year = 365 or 366(Leap Year)

P = 1,000,000 (Assume you are investing N1m)
T = 359
R = 19.50 = 19.50/100 = 0.195

I = (1,000,000 * 359 * 0.195) / 366 = 191,270.49

So your Interest is 191,270.49

GTB should debit you with: 1,000,000 - 191,270.49 = 808,729.51

NB: Charges are not included in this explanation.

Note: Different banks have different ways of passing the entries. Some banks will debit you with N1m and then credit you with 191,270.49. At maturity, you are now credited with N1m.

I understand perfectly now. Thanks 🙏

NL1960:


You might need to take it up with them.

Some might show 'Current Balance(Ledger Balance)' while some will show 'Available Balance'.

emmasoft:


@cutedharmee, business is a form of investment, NTB is another form of investment likewise others like stock or real estate. The main purpose of these investments is to make profit or returns. One is not better than the other it all depends on the investor's level if risk tolerance, efforts put in to get the returns, safety of both capital and the intended returns and many other factors.

Returns on two investment can be better compared when all factors affecting or surrounding them is the same.

Dangote is a business man but he's an investor in some banks that he's not managing but still get returns effortlessly which may not be the same compared with what he gets in Surgar or oil refinery.

Making, managing and growing wealth requires one to be involved in different forms of investment categories which could be low risk, medium risk or high risk. As the usual saying goes the higher the risk the higher the returns and vice versa.

Yeeah i get.. Thanks so much

awesomeJ:


If you do business with it and make 500k in 3months,
1. You took some risk, cos things could have gone south.
2. You put in your time and intellect for three months, after paying yourself for the time and intellect invested, the real profit may now be less than 100k, but most people prefer to discount tge cost of their efforts and still count the profit as 500k.


TBiLLs are: risk free, efforts-free.
No offloading goods, taking customers insults, collecting fake notes, no dragging customer with your neighbor 😁😁


This is not saying people should not do business but rather only do Tbills, that's not the suggestion at all, the post is about making fair comparisons between investment returns.

I very much agree

Take The First and The Hardest Step to Wealth the Rest of the Steps Will Be Easier

There is always joy in the hearts of parents when they see their baby take the very first step. In some cultures, it’s a big celebration especially if the child is the firstborn. Sometimes a remarkable thing is done that day e,g planting a fruit tree to commemorate the day of the first step.
The first step is celebrated because it was difficult and much effort was put in, it’s seen as an achievement and will lead to other steps which may eventually lead to even walking fast or running.
The first step is difficult because many considerations are made – fear of falling, not sure I can, not used to it, and many others.

Most times investment is like taking the first step, it seems difficult but it has to be taken if you must make more steps in life. One thing with the first step is that it’s somehow uncertain and full of doubts but it’s a breakthrough once it’s made.
Are you still struggling with the first step in investment? don’t be afraid just take it you don’t have to walk fast or run, it’s just a short pace or little movement but don’t wait further take it.

You have just some thousands of naira, don’t wait till it’s millions take the first step and invest in MMF, leave the more complicated form of investment for now and start, as you continue taking the baby steps in investment, you will get more confidence and have stability just like the baby that turns to an adult.

MMF and other short debt instruments with guaranteed capital and returns are like the first step in the investment journey that one needs to take. If you consider too many things you will be reluctant to take action. It’s true inflation is high, the naira value is down, you are not earning enough, plenty of expenses, bad economy etc yet it will be worse if you decide not to make any move and invest. Even the bible says “…he that considers the winds will not sow”… and if you don’t sow nothing to reap.

Imagine if you took that step to invest just 10,000 since January at close to 20% rate, about 2,000 would have been added to the 10,000 even while you are sleeping.
No matter how little, start now and you will find it easier to invest going forward.

Take the baby step now and other steps will be much easier.

Still wondering how to start, reach out to me for a guide.

emmasoft:
Take The First and The Hardest Step to Wealth the Rest of the Steps Will Be Easier

There is always joy in the hearts of parents when they see their baby take the very first step. In some cultures, it’s a big celebration especially if the child is the firstborn. Sometimes a remarkable thing is done that day e,g planting a fruit tree to commemorate the day of the first step.
The first step is celebrated because it was difficult and much effort was put in, it’s seen as an achievement and will lead to other steps which may eventually lead to even walking fast or running.
The first step is difficult because many considerations are made – fear of falling, not sure I can, not used to it, and many others.

Most times investment is like taking the first step, it seems difficult but it has to be taken if you must make more steps in life. One thing with the first step is that it’s somehow uncertain and full of doubts but it’s a breakthrough once it’s made.
Are you still struggling with the first step in investment? don’t be afraid just take it you don’t have to walk fast or run, it’s just a short pace or little movement but don’t wait further take it.

You have just some thousands of naira, don’t wait till it’s millions take the first step and invest in MMF, leave the more complicated form of investment for now and start, as you continue taking the baby steps in investment, you will get more confidence and have stability just like the baby that turns to an adult.

MMF and other short debt instruments with guaranteed capital and returns are like the first step in the investment journey that one needs to take. If you consider too many things you will be reluctant to take action. It’s true inflation is high, the naira value is down, you are not earning enough, plenty of expenses, bad economy etc yet it will be worse if you decide not to make any move and invest. Even the bible says “…he that considers the winds will not sow”… and if you don’t sow nothing to reap.

Imagine if you took that step to invest just 10,000 since January at close to 20% rate, about 2,000 would have been added to the 10,000 even while you are sleeping.
No matter how little, start now and you will find it easier to invest going forward.

Take the baby step now and other steps will be much easier.

Still wondering how to start, reach out to me for a guide.

Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.

Nakedman:


Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.

I thought folks like Otedola said the eighth wonder is Dangote Refinery na.

You people should settle on one and stop confusing us 😁😁😁

Nakedman:


Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.

I wonder how this compound interest can become a reality? for instance if you invest in mmf your accrued interest will not be reinvested until after three months and you won't get any interest on your accrued amount until it's reinvested, that I've confirmed with fbnquest only.

If you choose to invest in Tbs or bonds, you can't re-invest your yields automatically, you will have to do it manually therefore accurate compound interest won't work out this way. Remember in compound interest you will have to re-invest all your accrued interest even to the last kobo to get the right figure, I stand to be corrected.

freeman67:


That is false.

If you invest N2,000,000 in a 3 year bond at 17%, in the first year you will get N340,000 ( That's N170,000 two time in the year).

Second year, you will get N340,000 ( That's N170,000 two time in the year).

In the 3rd year you will get N2,340,000 (That's N170,000 in the first 6 months and N2,170,000 which is the addition of your last coupon/interest and your principal).

The final amount you will get for that investment is N3,020,000.

Except if you were investing your interest elsewhere which could give you additional interest. If you calculate your returns solely as it comes, the above is your the only interest in it.

U mean bonds give higher returns than tbills..

Good day fam, it long i visited here. Please i need answers to the questions below from the gurus in the house pls

1. Do they still maintain 50m as minimum for primary market bid
2. Which investment house/bank can bid in my stead since i cant bid myself
3. what is the current rate for 365 days
4. what are taxes/charges implications on the total returns on investment.

many thank sirs

Emzedz:

U mean bonds give higher returns than tbills..

That's not what I mean there. What I meant is that the assertion in the post I replied to that said you will get N7,020,000 if you invest N2,000,000 in 3 years bond at 17% is wrong.

Now to whether bond gives higher returns than TB or not. I will say the answer to that is dependent on many variables.

TBs are short term instruments of maximum of 365 days/a year while bonds have longer tenure (There is an FG Bond currently running that will mature in 2053). Once bond is locked in, you can keep collecting your coupon till it matures if you so wish at the rate it was subscribed. However, TB rate will keep fluctuating through out that period. You will not get a static rate for TB as it will be with bonds.

It just depends on a lot of things. Like are you aiming to invest for a short or long term? what rates is available for both? are you sure the same rate will be available for TB in your next subscription/ will TB rates not be higher than bond rate next year, do you have urgent need for the interest upfront/ do you prefer a structured kind of coupon/interest?

That's why I can't give a straight answer to it. You will need to consider these in determining which gives better returns.

Nakedman:


Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.

My question is, at what one point do one stop compounding? You cannot continue to compound infinitely.

For me, I would prefer to take out 50 - 70% of the annual interest to meet a target need, then leave the remaining 30 - 50% to continue compounding as an attempt to hedge against inflation

aremso:
Good day fam, it long i visited here. Please i need answers to the questions below from the gurus in the house pls

1. Do they still maintain 50m as minimum for primary market bid
2. Which investment house/bank can bid in my stead since i cant bid myself
3. what is the current rate for 365 days
4. what are taxes/charges implications on the total returns on investment.

many thank sirs

Boss, it's really been a whiiiile!

1. Yes.
2. I'd say StanbicIBTC
3. 21.24% discount rate from the last auction
4. 0% tax, fees should be c. 0.5% of returns(my estimate)