Crunk Times, My friend.....Crunk Times

[Captain_Ahab 5,000+ posts]

It's okay. We plan to leave here at 8.

Sounds good.

I am going to go Friday afternoon and get us a good tent spot. I don't like being in the middle of the huge frat crowd thats at the "center" of the junction (where all the tailgating takes place). I think we are going to set up in a corner near one of the busier crosswalks. Have crosswalks on two sides of us. That is if I can get the spot. They don't allow you to set up tents till 4:00 or 5:00 on Friday, and people will literally get into fights over spots. Its just a race once they allow you to set them up. ha.

I am thinking about stealing an idea I saw a few games ago. Three guys were in chairs facing the sidewalk right under the tent. And they had signs, rating women as they walked by. For example, if a hot girl walked by alone, their signs may have read "8, 9, 9" ..Fat ugly single bish walks by and they wouldn't even rate her. Their highest rating was "****!". I think it would be quite funny.

 

[Banana Balls 5,000+ posts]

Because the difference between days is constant, the percent change of the interest portion of the payment will decrease at a constant rate.
Interest is calculated by this:

[bal x Int Rate (yr) / 365] * Days

That doesn't make any sense to me. What does the length of a day matter when you're paying monthly interest?

 

[Banana Balls 5,000+ posts]

Justin, you really missed out on that thread you deleted. lawl

 

[Banana Balls 5,000+ posts]

I got one saved before the delete.

IamDeMan got them both. I flagged him down as soon as they were posted.

It makes great sense...and explains many things.

In a 14 day period (the length between payments) the interest on day 2 is equal to the interest on day 12. Each day has the SAME amount of interest. On typical loans (and the way we are taught in class) the interest on day 2 is LESS than the interest on day 12, thus by paying more frequently, one can achieve a cost savings by reducing the amount of times interest compounds on interest. Under my loan agreement, interest does not compound on interest within a period.

That doesn't explain why the interest does not go down as you pay off the principle value which is what I thought you were complaining about originally.

However, based on your comments, some loans compound monthly. Does yours?

Dunno. It has not been finalized yet. Which one is better?

 

[ramos 5,000+ posts]

So who wants to come build my car for me ? //content.invisioncic.com/y282845/emoticons/confused.gif.e820e0216602db4765798ac39d28caa9.gif

 

[bdawson72 5,000+ posts]

That would be a good question to ask, and it is rather simple.
"Show me the formula of how the interest on my loan is calculated"

Some lenders (and I am curious why this one doesn't) adds the interest from each day to the balance, thus the interest owed increases throughout a period -- because the balance is higher.

Credit Card lenders do this if you are to take a cash advance. Each day you owe "x dollars" in interest is added to the balance, making the next day's interest higher than the day before.

Now that I did not know.

 

[Banana Balls 5,000+ posts]

No. What I was complaining about was that the interest portion decreases at a constant rate rather than an increasing rate. The percentage change between periods would be greater if there were interest on interest daily compounding....by paying more frequently one would reduce the balance that is compounded. But since interest on interest daily compounding does not exist, I do not get this benefit.
My type of loan is imo the best. That way I am not subject on interest on interest within compounding periods. Otherwise, the interest (in dollar) you pay on day 29 of a monthly payment is greater than the interest you pay on day 2 of the same month.

I see. All of that makes perfect sense now. I had not thought of such situation before. I guess shelling out hundreds of thousands of dollars should prompt me to think about it a bit more.

 

[Banana Balls 5,000+ posts]

That would be a good question to ask, and it is rather simple.
"Show me the formula of how the interest on my loan is calculated"

Some lenders (and I am curious why this one doesn't) adds the interest from each day to the balance, thus the interest owed increases throughout a period -- because the balance is higher.

Credit Card lenders do this if you are to take a cash advance. Each day you owe "x dollars" in interest is added to the balance, making the next day's interest higher than the day before.

That would promote me to pay earlier.

 

[Banana Balls 5,000+ posts]

What is worse is that if you attempt to pay it off, and have an outstanding balance at a lower interest rate (like a purchase) the payment is applied to balances at the lower interest rate before it will be applied to the balance at the higher.
Say you have $2000 in balance for misc purchases @ 11%, you get a $50 cash advance. You have to pay off the $2,000 in purchases before you can pay off the $50. And each day the $50 accrues more and more interest.

That depends on the contract. I have read the fine print of my cards and one out of four does not do that. They pay off the higher of the two first.

 

[IamDeMan 5,000+ posts]

I feel like a messican today. I did labor for cash.

 

[Banana Balls 5,000+ posts]

I admit I didn't consider it either. But it's very important. Perhaps that post can save you a couple thousand. My loan is peanuts compared to yours, thus how interest is calculated can change payoffs wildly.

Indeed. I will have to have this examined in detail and push for the daily compound.

You are lucky. For many Americans, the 3 of the 4 is most common. I think they neither read, nor learn the math (like adding and multiplying) to learn finance. It's scary who they let get credit cards and invest their entire retirement into stocks.

Indeed. I was actually quite suprised. It was a Gateway Moola Visa which turned into a BoA card that I'm paying off to throw away because I refuse to support BoA.

 

[bdawson72 5,000+ posts]

So who wants to come build my car for me ? //content.invisioncic.com/y282845/emoticons/confused.gif.e820e0216602db4765798ac39d28caa9.gif

I'll do it. ]]I dont think anyone in here likes teh car audioz anymore. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

What is worse is that if you attempt to pay it off, and have an outstanding balance at a lower interest rate (like a purchase) the payment is applied to balances at the lower interest rate before it will be applied to the balance at the higher.
Say you have $2000 in balance for misc purchases @ 11%, you get a $50 cash advance. You have to pay off the $2,000 in purchases before you can pay off the $50. And each day the $50 accrues more and more interest.

Well shit. Thank god I havent done a cash advance on mine. But I do however owe more money than I can afford to pay off.

 

[UndercoverPunk 5,000+ posts]

I'm tired.

 

[bdawson72 5,000+ posts]

Of?

 

[cpierce 5,000+ posts]

sofakingbored //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif