UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: pwyles Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308518  
Subject: Re: (1) Weekly Payments (2) Credit Union Date: 4/8/1998 5:09 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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
1
2 500 on 1st
3 30 0.00 0.00
4 Average Daily Balance 0.00
5
6 $250 on 1st and 15th
7 14 250.00 3500.00
8 16 0.00 0.00
9 Average Daily Balance 116.67
10
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
17
18 $500 on last day
19 29 500.00 14500.00
20 1 0.0 0.00
21 Average Daily Balance 483.33<

~~paul
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Post of the Day:
Macro Economics

U.S. Stable, Europe Stalling
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement