Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.2 9/18/84; site rochester.UUCP
Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!mhuxn!ihnp4!qantel!dual!vecpyr!lll-crg!gymble!umcp-cs!seismo!rochester!bukys
From: bukys@rochester.UUCP (Liudvikas Bukys)
Newsgroups: net.invest
Subject: Re: A penny saved...
Message-ID: <12073@rochester.UUCP>
Date: Fri, 4-Oct-85 16:23:49 EDT
Article-I.D.: rocheste.12073
Posted: Fri Oct  4 16:23:49 1985
Date-Received: Mon, 7-Oct-85 05:29:11 EDT
References: <161@aplvax.UUCP>
Distribution: net
Organization: U. of Rochester, CS Dept.
Lines: 8

Most car loans are set up so that early payment of the entire balance
of principal saves you little in interest.  If you read your contract,
you will find something along the lines of "Calculation of interest due
is subject to the well-known accounting `Rule of Sevens'", or something
like that.  It might be the "rule of nines".  The upshot is that you
owe most of the interest even if you pay the balance early.

What a racket.