A B C D E G H K Method: after paying the minimums, any extra cash should be used to pay down the smallest ($ balance) loan first. N Principle $ 500.00 $ 1,000.00 $ 6,000.00 $ 15,000.00 3 Interest Rate (Annual) 5% 19% 4% 25% Total Min's Budget 4 Monthly Min Payment $ 20.00 $ 50.00 $ 135.00 $ 300.00 $ 505.00 $ 755.00 5 6 End of Month... Balance Pmt Balance Pmt Balance Pmt Balance Pmt Diff Sum of Pmts 7 1 $ 232.08 $ 270.00 $ 965.83 $ 50.00 $ 5,885.00 $ 135.00 $ 15,012.50 $ 300.00 $ 755.00 8 2 $ 2.09 $ 230.96 892.09 S 89.04 $ 5,769.62 135.00 $ 15,025.26 300.00 755.00 9 3 S 2.10 S 906.21 $ 5,788.85 $ 15,338.29 $ 755.00 10 4 $ 2.11 S 920.56 $ 5,808.14 $ 15,657.83 755.00 11 5 $ 2.12 935.13 $ 5,827.51 $ 15,984.04 755.00 12 6 $ 2.13 S 949.94 $ 5,846.93 $ 16,317.04 $ 755.00 $ 13 7 $ 2.13 S 964.98 $ 5,866.42 $ 16,656.98 755.00 14 8 $ 2.14 S 980.26 $ 5,885.97 $ 17,004.00 755.00 15 9 $ 2.15 995.78 $ 5,905.59 $ 17,358.25 755.00 16 10 $ 2.16 $ 1,011.55 $ 5,925.28 $ 17,719.88 755.00 17 2.17 $ 1,027.56 $ 5,945.03 $ 18,089.04 755.00 18 2.18 $ 1,043.83 $ 5,964.85 $ 18,465.90 755.00 19 13 2.19 $ 1,060.36 $ 5,984.73 $ 18,850.60 755.00 20 14 $ 2.20 $ 1,077.15 $ 6,004.68 $ 19,243.33 $ 755.00 21 15 $ 2.21 $ 1,094.20 $ 6,024.70 $ 19,644.23 $ 755.00 22 2.22 $ 1,111.53 $ 6,044.78 $ 20,053.48 755.00 23 17 $ 2.22 $ 1,129.13 $ 6,064.93 $ 20,471.26 755.00 24 18 $ 2.23 $ 1,147.01 $ 6,085.14 $ 20,897.75 $ 755.00 25 19 $ 2.24 $ 1,165.17 $ 6,105.43 $ 21,333.12 755.00 26 20 $ 2.25 $ 1,183.62 $ 6,125.78 $ 21,777.56 $ 755.00 21 $ 2.26 $ 1,202.36 $ 6,146.20 $ 22,231.26 ur 27 $ 755.00 28 22 $ 2.27 $ 1,221.39 $ 6,166.69 $ 22,694.41 755.0051 45 $ 2.50 $ 1,752.96 $ 6,657.21 $ 36,465.34 755.00 $ 52 46 S 2.51 $ 1,780.72 $ 6,679.40 $ 37,225.03 755.00 u u un un 53 47 $ 2.52 $ 1,808.91 $ 6,701.67 $ 38,000.55 755.00 54 48 2.53 $ 1,837.55 $ 6,724.01 $ 38,792.23 755.00 55 49 $ 2.54 $ 1,866.65 $ 6,746.42 $ 39,600.40 $ 755.00 56 50 $ 2.55 $ 1,896.20 $ 6,768.91 $ 40,425.41 $ 755.00 57 51 $ 2.56 $ 1,926.23 $ 6,791.47 $ 41,267.61 755.00 58 52 $ 2.57 $ 1,956.72 $ 6,814.11 $ 42,127.35 755.00 59 53 $ 2.58 $ 1,987.71 $ 6,836.82 $ 43,005.00 755.00 60 54 $ 2.59 $ 2,019.18 $ 6,859.61 $ 43,900.94 755.00 61 55 $ 2.61 $ 2,051.15 $ 6,882.48 $ 44,815.54 755.00 urururun 62 56 $ 2.62 $ 2,083.62 $ 6,905.42 $ 45,749.20 755.00 63 57 $ 2.63 $ 2,116.61 $ 6,928.44 $ 46,702.31 755.00 64 58 $ 2.64 $ 2,150.13 $ 6,951.53 $ 47,675.27 755.00 65 59 $ 2.65 $ 2,184.17 $ 6,974.70 $ 48,668.51 755.00 66 2.66 $ 2,218.75 $ 6,997.95 $ 49,682.44 $ 755.00 67 61 $ 2.67 $ 2,253.88 $ 7,021.28 $ 50,717.49 S 755.00 68 62 $ 2.68 $ 2,289.57 $ 7,044.68 $ 51,774.10 755.00 un ur 69 63 $ 2.69 $ 2,325.82 $ 7,068.16 $ 52,852.73 755.00 70 64 $ 2.71 $ 2,362.65 $ 7,091.73 $ 53,953.83 755.00 71 65 $ 2.72 $ 2,400.06 $ 7,115.36 $ 55,077.86 un 755.00 ur 72 99 2.73 $ 2,438.06 $ 7,139.08 $ 56,225.32 755.00 S73 67 $ 2.74 $ 2,476.66 $ 7,162.88 $ 57,396.68 755.00 $ 74 $ 2.75 $ 2,515.87 $ 7,186.76 $ 58,592.45 755.00 75 69 $ 2.76 $ 2,555.71 $ 7,210.71 $ 59,813.12 755.00 76 70 $ 2.77 $ 2,596.17 $ 7,234.75 $ 61,059.23 755.00 77 71 $ 2.78 $ 2,637.28 $ 7,258.86 $ 62,331.30 755.00 78 72 $ 2.80 $ 2,679.04 $ 7,283.06 $ 63,629.86 755.00 79 73 $ 2.81 $ 2,721.46 $ 7,307.34 $ 64,955.49 755.00 80 74 $ 2.82 $ 2,764.55 $ 7,331.69 $ 66,308.73 755.00 81 75 $ 2.83 $ 2,808.32 $ 7,356.13 $ 67,690.16 755.00 82 76 $ 2.84 $ 2,852.78 $ 7,380.65 $ 69,100.37 755.00 83 77 $ 2.86 $ 2,897.95 $ 7,405.26 $ 70,539.96 755.00 84 78 $ 2.87 $ 2,943.84 $ 7,429.94 $ 72,009.54 755.00 85 79 $ 2.88 $ 2,990.45 $ 7,454.71 $ 73,509.74 755.00 86 80 $ 2.89 $ 3,037.79 $ 7,479.55 $ 75,041.19 755.00 87 81 $ 2.90 $ 3,085.89 $ 7,504.49 $ 76,604.55 755.00 88 82 $ 2.92 $ 3,134.75 $ 7,529.50 $ 78,200.48 755.00 89 83 $ 2.93 $ 3,184.39 $ 7,554.60 $ 79,829.66 755.00 90 84 $ 2.94 $ 3,234.81 $ 7,579.78 $ 81,492.77 755.00 SB D G H K Method: after paying the minimums, any extra cash should be used to pay down the highest interest rate (%) loan Principle $ 500.00 Interest Rate (Annual) 5% 19% 4% 25.00% Total Min's Budget Monthly Min Payment $ 20.00 S 50.00 $ 135.00 $ 300.00 $ 505.00 $ 755.00 End of Month.. Balance Pmt Balance Pmt Balance Pmt Balance Pmt Diff Sum of Pmts 10 4 $ 467.97 $ 960.84 755.00 $ 11 5 $ 469.92 $ 976.06 755.00 12 $ 471.88 $ 991.51 755.00 13 7 $ 473.84 755.00 14 8 $ 475.82 755.00 15 9 $ 477.80 755.00 5 16 10 $ 479.79 755.00 $ 17 11 $ 481.79 755.00 18 12 $ 483.80 755.00 $ 19 13 $ 485.81 755.00 S 20 14 $ 487.84 755.00 15 $ 489.87 $ 755.00 16 $ 491.91 $ 755.00 17 $ 493.96 $ 755.00 24 18 $ 496.02 $ 755.00 25 19 $ 498.08 755.00 26 20 $ 500.16 755.00 21 $ 502.24 755.00 22 $ 504.34 755.00 23 $ 506.44 755.00 24 $ 508.55 755.00 25 $ 510.67 755.00 26 $ 512.79 755.00 27 $ 514.93 755.00 28 $ 517.08 755.00 29 $ 519.23 755.00 30 $ 521.39 755.00 31 $ 523.57 755.00 $ 32 $ 525.75 HHHHHHHHH 755.00 $ 33 $ 527.94 755.00 34 $ 530.14 755.00 35 $ 532.35 755.00 36 $ 534.57 755.00 37 $ 536.79 $ 755.00 38 $ 539.03 755.00 39 $ 541.28 755.00 40 $ 543.53 755.00 41 $ 545.80 755.00 42 $ 548.07 755.00 43 $ 550.35 755.00 44 5 552.65 755.00\fA B C D E F G H 2 Loan Principle 500.00 S 1,000.00 $ 6,000.00 $ 15,000.00 3 Interest Rate (Annual) 5% 19% 4% 25.00% 4 Monthly Min Payment 20.00 $ 50.00 $ 135.00 $ 300.00 5 Results Months until freedom Total Paid 6 A B 8 Delta 0 un 9 10 11 12 Which method would you choose and why? 13 14 15 16 17