Guest drmd Posted September 18, 2003 Report Share Posted September 18, 2003 Does anyone know the difference between the total amount of accumulated interest it will cost to carry LOC if monthly interest is paid, as opposed to not paying any monthly interest? (let's make the interest rate at 4.50% for both cases (?!) and 30K/year for 4 years. Thank you in advance to those who'll reply. Link to comment Share on other sites More sharing options...
Guest r6punkette Posted September 18, 2003 Report Share Posted September 18, 2003 I'm confused. If you had the money to pay the interest of the LOC, why would you need the LOC in the first place? Where would you be getting the money to pay the interest? Most students just add it to the LOC. compounded interest 35.78 + 34.23 + 32.76 + 31.35 = 134.12 no interest = 120k over 4 years yearly interest payments would be 1.35 + 2.7 + 4.05 + 5.4 = 13.5k so...I think you save 400 bucks by paying the interest (but I don't know where you get the money for that interest payment). I hope my calculations were correct. Link to comment Share on other sites More sharing options...
Guest drmd Posted September 20, 2003 Report Share Posted September 20, 2003 Family will pay for the monthly interest; but if you are right about the $400 difference, I'd probably just add it to the LOC. However, with the interest accumulating and compounding, every month, $400 does not seem right, does it? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.