Tip 3 - Stay away from the high interest debt ! !

It is amazing how quickly interest collects when compounded monthly at a rate of 24%

Rate Month# Interest Balance
24 0   $100.00
24 1 $2.00 $102.00
24 2 $2.04 $104.04
24 3 $2.08 $106.12
24 4 $2.12 $108.24
24 5 $2.16 $110.41
24 6 $2.21 $112.62
24 7 $2.25 $114.87
24 8 $2.30 $117.17
24 9 $2.34 $119.51
24 10 $2.39 $121.90
24 11 $2.44 $124.34
24 12 $2.49 $126.82
24 13 $2.54 $129.36
24 14 $2.59 $131.95
24 15 $2.64 $134.59
24 16 $2.69 $137.28
24 17 $2.75 $140.02
24 18 $2.80 $142.82
24 19 $2.86 $145.68
24 20 $2.91 $148.59
24 21 $2.97 $151.57
24 22 $3.03 $154.60
24 23 $3.09 $157.69
24 24 $3.15 $160.84
24 25 $3.22 $164.06
24 26 $3.28 $167.34
24 27 $3.35 $170.69
24 28 $3.41 $174.10
24 29 $3.48 $177.58
24 30 $3.55 $181.14
24 31 $3.62 $184.76
24 32 $3.70 $188.45
24 33 $3.77 $192.22
24 34 $3.84 $196.07
24 35 $3.92 $199.99
24 36 $4.00 $203.99
24 37 $4.08 $208.07
24 38 $4.16 $212.23
24 39 $4.24 $216.47
24 40 $4.33 $220.80
24 41 $4.42 $225.22
24 42 $4.50 $229.72
24 43 $4.59 $234.32
24 44 $4.69 $239.01
24 45 $4.78 $243.79
24 46 $4.88 $248.66
24 47 $4.97 $253.63
24 48 $5.07 $258.71
24 49 $5.17 $263.88
24 50 $5.28 $269.16
24 51 $5.38 $274.54
24 52 $5.49 $280.03
24 53 $5.60 $285.63
24 54 $5.71 $291.35
24 55 $5.83 $297.17
24 56 $5.94 $303.12
24 57 $6.06 $309.18
24 58 $6.18 $315.36
24 59 $6.31 $321.67
24 60 $6.43 $328.10

 

First of all, you would think that 24%, being just under a quarter (25%), that your principal amount would double after 4 years....

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With compounding of interest, it doubles in just 3 years.

 

 

 

 

 

 

Compound interest really adds up !

 

 

 


The amount owing triples within 56 months