RE: Loan Interest Payment Puzzle / Question
May 2, 2017 at 1:15 pm
(This post was last modified: May 2, 2017 at 1:20 pm by TheRealJoeFish.)
So, without looking at anything but OP, I think I've got the answer to the initial problem:
The second problem I want to think about some more.
Edit: don't know if my solution to the first one's allowed. I thought you could alternate months. I agree that if you have to choose one loan, pay it off entirely, and then pay the other one off, you pay the smaller one first. Because if you pay off 2000 on the small one, you're saving yourself $100 (and interest thereon, and so on) going forward. If you pay off 2000 on the bigger one with the lower rate, you're saving yourself $60. This is basically what CD was saying intuitively.
The second problem I want to think about some more.
Edit: don't know if my solution to the first one's allowed. I thought you could alternate months. I agree that if you have to choose one loan, pay it off entirely, and then pay the other one off, you pay the smaller one first. Because if you pay off 2000 on the small one, you're saving yourself $100 (and interest thereon, and so on) going forward. If you pay off 2000 on the bigger one with the lower rate, you're saving yourself $60. This is basically what CD was saying intuitively.
How will we know, when the morning comes, we are still human? - 2D
Don't worry, my friend. If this be the end, then so shall it be.
Don't worry, my friend. If this be the end, then so shall it be.