posted on May, 2 2012 @ 08:13 AM
Make sure and round your answer according to the problem...in this case 1.080059739 - 1 = .080059739 rounded to the fourth decimal...0801!
Because interest rates are almost always figured using precentages that include decimals (5.3% annually...) you need to round accordingly!
5.3% might actually be 5.25613...which means the bank is screwing you out of .04387% and you don't even know about it!
On a $100,000 dollar fixed rate loan...you give the bank $4,387.00 dollars more for that loan than you really should have...all because they rounded
up to the nearest decimal equivilant!
Now take that $4,387.00 and multiply it by a couple hundred thousand loans...hmmm...no wonder we are the 99% 'ers that are broke!
edit on 2-5-2012 by jerryznv because: (no reason given)