Virag Consulting Automotive Technology Service - Virag Consulting
Description: Mark Virag's Professional Journal
Mark Virag's Professional Journal
A while back, I did some foundational work for a leading biweekly payment service. That is, the math part, which I will reprise here. Biweekly works best in a climate of high interest rates and, unfortunately, soon after this project, the Federal Reserve dropped their reference rate to zero. The Fed has not been persistently above 2% until recently, and biweekly is once again looking good.
The featured chart shows a scenario first constructed by my erstwhile partner Phil Battista. I call it the “magic trick” because the customer in this scenario has financed an extra $3,250 with no change to the term, APR, or payment. Before presenting the trick, here are some basics about biweekly.
Virag Consulting Automotive Technology Service - Virag Consulting