06-02-2003, 11:50 PM
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#25
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Drow Priestess 
Join Date: March 13, 2001
Location: a hidden sanctorum high above the metroplex
Age: 55
Posts: 4,037
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Quote:
Originally posted by Bungleau:
Note that the numbers above are examples, and real actuarials can poke holes in them.
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You rang? [img]graemlins/beigesmilewinkgrin.gif[/img]
No, the numbers in your example are fine, as is your logic. Given two loans of equal term, pay off the higher interest rate first. If you can pay off one loan quickly, do so, then apply those payments against the next loan to pay it off quickly. This is called "debt stacking", and will save you a great deal of money in the long run.
MagiK's mentioning dollar cost averaging is also important, because this is the best way to save for the future. I have a mathematical proof that, by using dollar cost averaging, the price of an investment can drop drastically (66% in my proof) but you can still realize an amazing return on your investment.
Or you could play the lottery...or take a vacation to Las Vegas. [img]tongue.gif[/img]
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