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a63461

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  1. Not sure about 63461's assertion that daily compounding applies (possible if we're talking a finance co; monthly applies to CC). Formula is straightforward though: ((1+(r/365))^365 - 1; so for example a stated annual rate of 5%, compounded daily, is 5.13% That said, compounding is a minor factor in the question posed (largely impacts both offers to a roughly equal extent) and is merely a nit that is best ignored. For financing over 12 mo, CA2 is modestly advantageous over CA1. As noted in another post, that advantage declines over longer periods. And CA1 is distinctly disadvantaged in the case where the debt is repaid in less than a year. Thanks, that's very helpful!
  2. It has variances depending on the CC issuers minimum payment requirements. @nooneimportant, @Konrad2012 Thanks, that's very helpful!
  3. It does not. Taking into account the interest on the CA fee, CA1 is even more unattractive. What else is there, then, to consider. I'm not going to do your third grade math assignment for you. Thanks, the first part of your reply is very helpful! The rest? Gosh, I don't recall learning the formula, for daily compounded interest with variances depending on the CC issuers minimum payment requirements, in the third grade, so, I"m not exactly sure how that helps, other than to stroke your own ego.
  4. @MarvBear Thanks, for the welcome! @PotO Thanks! Looks like, CA1 will cost more, in your BT example, for 18 mos. FWIW, this is a Cash Advance offer, with no end date. Does your example take into account, (correct me, if I'm wrong here) that I'll be paying interest on that $500 CA fee, moving forward, as well? If it's not too much trouble, it'd be very helpful, if you'd show, how to do the calculation to compare.
  5. Hello all, How would you do the math, to determine, which cash advance, compounded daily, will cost more, over time? CA1 = 5% transaction fee ($10 minimum, no maximum), 5.65% APR CA2 = NO transaction fee, 10.49% APR Thanks!

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