I saw this graphic on Facebook and was taken aback by how expensive this debt seems to be. However, doing the math reveals that the numbers are very misleading.

When Ben Franklin died in 1790 he left $5,000 each to the cities of Boston and Philadelphia. Each city was to create a fund that would last for 200 years.

Do you know a way to calculate APR with low balance transfer offers with credit cards? All methods I’ve previously read about don’t work, because they assume you make equal payments for the full term until the balance is paid off. This is how mortgages are paid, so the APR formulas work for those.

Two stores are having a sale. In Store #1 the deal is take 25% off then take an additional 25% off. In Store #2 the deal is take 50% off. Which store has the better deal? (Store #1, Store #2, Both are the same)

Rachel was telling Jack about her romantic date with Dave. Jack is a man that is more concerned with the cost of the frolic than the details of their amorous evening. Jack asked Rachel how much the tab was for food only (tax included). Rachel was too focused on Dave to remember the amount for the actual dinners, but she did remember tipping the waiter 16% and that the final bill, tip included, was $159.50. Jack was quite amazed that Rachel would remember so much, but not recall the cost of the dinner before the tip. Of course, Jack knows his math and can easily figure it out. Can you? What is the cost of the dinner before the tip? ($137.50, $140.25, or $142.25)

You have $10,000 that you want to deposit in a money market account. You have a choice between two accounts. Both accounts pay 5% APR (Annual Percentage Rate). One account is compounded daily, meaning that interest is paid daily to the account. The other is compounded monthly meaning that interest is paid monthly. After one year, how much more is earned by depositing the money in the account that is compounded daily? ($1.05, $10.05, $100.05, or $1,000.05)

Here are two mortgages: (Loan 1) Standard mortgage for $166,792 at 6% for 30 years with monthly payments of $1,000.00 or (Loan 2) A biweekly mortgage for $166,792 at 6.1% for 25 years with biweekly payments (once every two weeks) of $500. Which mortgage is better? (Note: There are no prepayment penalties for either loan. Meaning that you can pay as much as you wish, at anytime, without penalty.)

If I have a current mortgage balance of around $66,150 at 8.25% fixed rate, monthly payments, with 21 years left on a 30 year mortgage, How much do I save if get a 15 year mortgage at 4.85% fixed rate, biweekly payments, with $10,190 of credit card debt added which is currently at 9.99%?

Three men checked into a hotel room and were charged $30 for which they paid $10 each. The next day, the manager realized that the men had been overcharged since the real price is $25 for the room. The manager gave the bellhop $5 to return to the three men. On the way to their room the bellhop decided to keep $2 for himself so he wouldn’t have to make change. The bellhop gave $1 to each man. The three men had now paid $9 each, or a total of $27. This, plus the $2 the bellhop kept for himself, makes a total of $29. What happened to the other dollar?

Video Presentation: You should always be thinking about refinancing because your mortgage is probably the most expensive purchase you’ll ever make. Notice that I didn’t say your house was the most expensive purchase. That’s because when you took a mortgage, you purchased that money to pay for the house. The purchase of that money is paid by the interest charges.