New answers tagged

3

If the 7% return were completely risk free (there's no risk of the issuer defaulting, the investment losing value, etc.) Then mathematically you'd be better off focusing on whichever rate were higher. So if the investment earned only 0.001% more than the loan you wouldn't more than the minimum payment on the loan. In reality, there's not a clear answer for ...


-1

If you have a loan that is guaranteed to have 6.999% interest forever, and a savings account that is guaranteed to have 7% interest forever, and some extra money, of course you should put it in the savings account instead of the loan. If you put $100 in the savings account instead of the loan, it costs you $6.999 per year because you are not paying back the ...


Top 50 recent answers are included