edexter
Unregistered User
(2/15/04 5:15 pm)
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IF you are hoping to end a siege ..... use of panic (or through harrasment to encourage panic) to encourage riskier investments and less deversifactation...., cash flow goes something like this.... $4 back to card as capital $2 as interest... drops by 4 cents capital and 4 cents interest a month... 5.5 is 4.58 neg cash flow of 1.42 not paying the $50 fee divided by 2 comes out to 2.08 cashflow (and positive capital). just cash flow would be 18 months until positive cash flow.. yield comes out to 4.5 + 1.5 + 1.5 7.5% + (1/3 * 1.5) = 8% on capital + 16.66 not paid in fees... at 4% with $300 cash each $50 added would drop the cash flow out by 50 cents(equity) plus some interest, if I did my math right and reduce the yield.... and reduce the cash flow break even by 6 months.. cash flow into the acount is not a big factor just for statistacal purpose of worst case... april and pay of capital one in full may (pay off card in full this month)... big cashflow adjusment.
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