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Thread: Calling all Economics majors..

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    Super Moderator Jason kiDD's Avatar Jason kiDD is offline
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    Calling all Economics majors..

    If you have a base $20,000 dollars in liability with two methods of paying it, which one will save you the most money over a 3 year period..

    1) $20,000 @ 5.9% over 3 years
    2) $10,000 @ 3.99%, $5k @ 2.9%, & $5k @ 3.9% over 3 years


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    Registered User BajanFyah83 is offline
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    Quote Originally Posted by PJK
    If you have a base $20,000 dollars in liability with two methods of paying it, which one will save you the most money over a 3 year period..

    1) $20,000 @ 5.9% over 3 years
    2) $10,000 @ 3.99%, $5k @ 2.9%, & $5k @ 3.9% over 3 years

    That seems more like a finance question than a eco question.

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    He loves me! bagolicious's Avatar bagolicious is offline
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    Super Moderator Jason kiDD's Avatar Jason kiDD is offline
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    Quote Originally Posted by BajanFyah83
    That seems more like a finance question than a eco question.
    All you had to say is I dunoo ya know..

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    I breed Ank Panty Droppa's Avatar Panty Droppa is offline
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    Quote Originally Posted by PJK
    If you have a base $20,000 dollars in liability with two methods of paying it, which one will save you the most money over a 3 year period..

    1) $20,000 @ 5.9% over 3 years
    2) $10,000 @ 3.99%, $5k @ 2.9%, & $5k @ 3.9% over 3 years

    interest compounded anually?

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    Registered User BajanFyah83 is offline
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    Quote Originally Posted by PJK
    All you had to say is I dunoo ya know..
    In all honesty, i was gettin my finance formulas to see what was wat. Dats why i said it seems like a finance question. I was just tryin tuh help.

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    Super Moderator Jason kiDD's Avatar Jason kiDD is offline
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    Quote Originally Posted by Dutty
    interest compounded anually?
    Of course..

    Bfyah: No problem juss let me know when you come to a conclusion..

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    I breed Ank Panty Droppa's Avatar Panty Droppa is offline
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    Number 2

    I am pretty sure

    LOL

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    Super Moderator Jason kiDD's Avatar Jason kiDD is offline
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    Quote Originally Posted by Dutty
    Number 2

    I am pretty sure

    LOL
    Give me da numbers..

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    Registered User BajanFyah83 is offline
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    At the 5.9 rate I get about $23753 ($23752.97) so that would cost u $3753. Someone with more experience may want to double check that. I couldn't find my formula sheet.

    Double checked wit my formula at 6% over 3 years that would be 20000 * 1.1910 = 23820 so my # at 5.9 is accurate
    Last edited by BajanFyah83; 06-03-2005 at 03:15 PM.

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    I breed Ank Panty Droppa's Avatar Panty Droppa is offline
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    Quote Originally Posted by BajanFyah83
    At the 5.9 rate I get about $23753 ($23752.97) so that would cost u $3753. Someone with more experience may want to double check that. I couldn't find my formula sheet.

    You got the first one right so far..

    Number 1 is

    $23,753.00

    Number 2 is

    $20,932.61

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    Registered User BajanFyah83 is offline
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    Quote Originally Posted by Dutty
    You got the first one right so far..

    Number 1 is

    $23,753.00

    Number 2 is

    $20,932.61
    Yea I just did the 2nd one, I rounded up to the whole # (on the interest rate) and I am in the same ballpark as you. So #2 would cost less.
    Last edited by BajanFyah83; 06-03-2005 at 03:23 PM.

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    I breed Ank Panty Droppa's Avatar Panty Droppa is offline
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    PJK, you owe me 11 bucks

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    Super Moderator Jason kiDD's Avatar Jason kiDD is offline
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    Quote Originally Posted by Dutty
    PJK, you owe me 11 bucks
    Wait wait wait so you telling me on option two I would only acquire a total of 932.61 total interest on the balance of $20k over 36 months

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    I breed Ank Panty Droppa's Avatar Panty Droppa is offline
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    Quote Originally Posted by PJK
    Wait wait wait so you telling me on option two I would only acquire a total of 932.61 total interest on the balance of $20k over 36 months

    Yup


    Option 1 is much more because you compounding much more money with a high interest rate.

    If you break down number 2, much smaller amounts of money at lower interest rates.

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