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Author: pwyles Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308230  
Subject: Re: (1) Weekly Payments (2) Credit Union Date: 4/8/1998 5:10 PM
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Ranked in order of greatest benifit.

$500 on first day of billing cycle
$250 on on first and 15th day of billing cycle
$125 a week starting on the first day of billing cycle
$500 on last day of billing cycle (the due date)

In each case what was paid during the month was $500, but by paying the $500 on the first day of the cycle you reduced the average daily balance for the whole month.  For these calculation I assumed a 30 day billing cycle, and what the balance is at the end of the day.

           A            B         C         D
0   Days at balance   Balance
2   500 on 1st
3                30      0.00      0.00
4   Average Daily Balance          0.00
6   $250 on 1st and 15th
7                14    250.00   3500.00
8                16      0.00      0.00
9   Average Daily Balance        116.67
11  $125 on 1st, 8th, 15th, and 22nd
12                7    375.00   2625.00
13                7    250.00   1750.00
14                7    125.00    875.00
15                9      0.00      0.00
16  Average Daily Balance        175.00
18  $500 on last day
19               29    500.00  14500.00
20                1      0.0       0.00
21  Average Daily Balance        483.33<

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