3 ms·
Huh? Start: $40 @ 0.8% ($0.32 daily) + $1000 @ 0.07% ($7 daily) day 1: pay $19 on the small debt; $21.32 remain (and $1007 on the other) day 2: pay
by tbrownaw 16y ago
Huh?
Start: $40 @ 0.8% ($0.32 daily) + $1000 @ 0.07% ($7 daily)
day 1: pay $19 on the small debt; $21.32 remain (and $1007 on the other)
day 2: pay $19 on the small debt; $2.49 remain (and $1014.05 on the other)
day 3: pay off the small debt ($2.51) and pay $16.49 on the remaining one ($1004.66 remain)
day 4..n: pay $19 on the remaining debt
balance goes as X=X*1.007 - 19; paid off in 67 more days
Perhaps it would help instead to think of them as investment opportunities: opportunity A pays 0.8% and has a limit of $40 invested, opportunity B pays 0.7% and has a limit of $1000 invested. First you max out opportunity A, then you start putting money into opportunity B. Ignoring opportunity A means you miss out on up to $0.04/day.