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
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.Originally Posted by PJK
All you had to say is I dunoo ya know..Originally Posted by BajanFyah83
interest compounded anually?Originally Posted by PJK
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.Originally Posted by PJK
Of course..Originally Posted by Dutty
Bfyah: No problem juss let me know when you come to a conclusion..
Number 2
I am pretty sure
LOL
Give me da numbers..Originally Posted by Dutty
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.
Originally Posted by BajanFyah83
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.Originally Posted by Dutty
Last edited by BajanFyah83; 06-03-2005 at 03:23 PM.
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 monthsOriginally Posted by Dutty
Originally Posted by PJK
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.