A B C D E F G H K M Method: after paying the minimums, any extra cash should be used to pay down the smallest ($ balance) loan first. Principle $ 500.00 $ 1,000.00 $ 6,000.00 $ 15,000.00 W Interest Rate (Annual) 5% 19% 4% 25% Total Min's Budget Monthly Min Payment $ 20.00 $ 50.00 $ 135.00 $ 300.00 $ 505.00 $ 755.00 UI A 6 End of Month... Balance Pmt Balance Pmt Balance Pmt Balance Pmt Diff Sum of Pmts 1 $ 232.08 $ 270.00 $ 965.83 $ 50.00 $ 5,885.00 $ 135.00 $ 15,012.50 $ 300.00 $ 755.00 00 2 $ 233.05 $ 981.13 $ 5,904.62 $ 15,325.26 $ 755.00 $ 9 3 234.02 $ 996.66 $ 5,924.30 $ 15,644.54 755.00 10 4 $ 235.00 $ 1,012.44 $ 5,944.05 $ 15,970.46 $ 755.00 $ 11 5 235.98 $ 1,028.47 $ 5,963.86 $ 16,303.18 755.00 12 6 $ 236.96 $ 1,044.76 $ 5,983.74 $ 16,642.83 $ 755.00 13 7 $ 237.95 $ 1,061.30 $ 6,003.69 $ 16,989.56 $ 755.00 14 8 $ 238.94 $ 1,078.10 $ 6,023.70 $ 17,343.51 $ 755.00 15 9 $ 239.93 $ 1,095.17 $ 6,043.78 $ 17,704.83 755.00 16 10 $ 240.93 $ 1,112.51 $ 6,063.92 $ 18,073.68 $ 755.00 17 11 $ 241.94 $ 1,130.13 $ 6,084.14 $ 18,450.22 755.00 18 12 $ 242.94 $ 1,148.02 $ 6,104.42 $ 18,834.60 $ 755.00 19 13 $ 243.96 $ 1,166.20 $ 6,124.76 $ 19,226.98 755.00 20 14 $ 244.97 $ 1,184.66 $ 6,145.18 $ 19,627.54 755.00 21 15 $ 245.99 $ 1,203.42 $ 6,165.66 $ 20,036.45 755.00 22 16 $ 247.02 $ 1,222.47 $ 6,186.22 $ 20,453.88 755.00 23 17 $ 248.05 $ 1,241.83 $ 6,206.84 $ 20,880.00 755.00 24 18 $ 249.08 $ 1,261.49 $ 6,227.53 $ 21,315.00 755.00 25 19 $ 250.12 $ 1,281.46 $ 6,248.28 $ 21,759.06 755.00 26 20 $ 251.16 $ 1,301.75 $ 6,269.11 $ 22,212.38 755.00 27 21 $ 252.21 $ 1,322.37 $ 6,290.01 $ 22,675.13 755.00 28 22 $ 253.26 $ 1,343.30 $ 6,310.98 $ 23,147.53 755.00A B C D E F G H K Method: after paying the minimums, any extra cash should be used to pay down the highest interest rate (%) loan first. Principle $ 500.00 $ 1,000.00 $ 6,000.00 $ 15,000.00 Interest Rate (Annual) 5% 19% 4% 25.00% Total Min's Budget Monthly Min Payment $ 20.00 $ 50.00 $ 135.00 $ 300.00 $ 505.00 $ 755.00 UT 6 End of Month... Balance Pmt Balance Pmt Balance Pmt Balance Pmt Diff Sum of Pmts 1 $ 482.08 S 20.00 $ 965.83 50.00 $ 5,885.00 $ 135.00 $ 14,762.50 $ 550.00 ur 755.00 8 2 $ 464.09 20.00 931.13 50.00 $ 5,769.62 $ 135.00 $ 14,520.05 $ 550.00 755.00 9 3 $ 466.03 945.87 $ 5,788.85 $ 14,822.55 $ 755.00 10 4 $ 467.97 960.84 $ 5,808.14 $ 15,131.36 755.00 $ 11 5 $ 469.92 976.06 $ 5,827.51 $ 15,446.59 $ 755.00 12 6 $ 471.88 S 991.51 $ 5,846.93 $ 15,768.40 755.00 13 7 $ 473.84 $ 1,007.21 $ 5,866.42 $ 16,096.91 755.00 14 8 $ 475.82 $ 1,023.16 $ 5,885.97 $ 16,432.26 $ 755.00 15 9 $ 477.80 $ 1,039.36 $ 5,905.59 $ 16,774.60 S 755.00 $ 16 10 $ 479.79 $ 1,055.82 $ 5,925.28 $ 17,124.07 755.00 $ 17 11 $ 481.79 $ 1,072.53 $ 5,945.03 $ 17,480.82 755.00 $ 1,089.51 $ 5,964.85 $ 17,845.00 un 18 12 $ 483.80 755.00 19 13 $ 485.81 $ 1,106.76 $ 5,984.73 $ 18,216.77 $ 755.00 $ 20 14 $ 487.84 $ 1,124.29 $ 6,004.68 $ 18,596.29 S 755.00 S 21 15 $ 489.87 $ 1,142.09 $ 6,024.70 $ 18,983.71 un 755.00 $ 22 16 $ 491.91 $ 1,160.17 $ 6,044.78 $ 19,379.21 $ 755.00 $ 23 17 $ 493.96 $ 1,178.54 $ 6,064.93 $ 19,782.94 755.00 24 18 $ 496.02 $ 1,197.20 $ 6,085.14 $ 20,195.08 un 755.00 25 19 $ 498.08 $ 1,216.16 $ 6,105.43 $ 20,615.81 S 755.00 $ 26 20 $ 500.16 $ 1,235.41 $ 6,125.78 $ 21,045.31 755.00 S 27 21 $ 502.24 $ 1,254.97 $ 6,146.20 $ 21,483.75 $ 755.00 $ 28 22 $ 504.34 $ 1,274.85 $ 6,166.69 $ 21,931.33 755.00A B C D E F G H 2 Loan Principle S 500.00 $ 1,000.00 $ 6,000.00 $ 15,000.00 3 Interest Rate (Annual) 5% 19% 4% 25.00% Monthly Min Payment $ 20.00 $ 50.00 $ 135.00 $ 300.00 5 Results Months until freedom Total Paid 6 A B 8 Delta 0 9 10 11 12 Which method would you choose and why? 13 14 15 16 17