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Instructions and Help about vehicle payoff authorization form

Everyone welcome to this week×39’edition off drawbridge finance my name is Levi woods and this week we're going to Glover a real-world scenario of a friend of mine recently got a bonus at work×5,500 and which happens to be the same amount that he owes on his car loan from couple years ago, so we talked about it, and he has two years remaining on his car loan and he×39;currently paying two point nine ninepercenthe asked me well you know what should I do should I use the cash to pay it off or should I just continue making the payments what works out better snow the scenario setup we have this×5,500 in cash that we×39’ve receiveAndrewe currently have a liability of $5,500loan which we×39’re paying two pointing Nicene percent on so IN×39’m going to just show you quickly four different people and their little scenario on what would happen it based on the decisions that they make, so we've got Alice Bob Charlie and Doug so let×39’s start with Doug is really lazy and he Doug does nothing's he keeps the $5,500 in cash, and he continues to make regular loan payments from that cash, so his monthly payment is two hundred and thirty-six dollars so next let's look at Charlie uses the $5,500 in cash to pay off the loathe thinks this is a brilliant idea bathe has to pay an early repayment fee so that early repayment fee costs him $50but he has no debt anymore, and he has monthly payment of $0 he's made a choice that he believes his quite solid now Boron the other hand he thinks well IN×39;begot this $5,500 it was unexpected and Should just invest this money and what×39’ll do is I'll pull the dividend that at IN×39’m going to receive, and I'm going to pay down my loan, so he invested×5,500this costs him ten dollars to do that, and he invests in a fund that pays 7×annual dividend which works out tothirty-two dollars a month he withdraws sat thirty-two dollars and reduces his loan payment from his monthly cash payment which means that each month taxpaying only 204 dollars in cash and this×32 payment is coming from his dividend from his investment, so he's made a smart move there because he×39’s reduced his monthly payment either×39’s investesome moneyed now Alice on the other hand she×39;like well you know what this bonus has nothing to do with my car loan, so I'going to keep it completely separates×39’s going to invest the safety fiveve hundred dollars that Bob did return a 7% annual dividend there's ten dollar fee to invest that money another×39’s going to reinvest her thirty dollars rs a month that she receives in dividends using a drip program which cost her nothing she continues to make her regular loan payments of two hundred and thirty-six dollars each month, so that's great that was the decision that they made they got that all set up the payments happen automatically so now let's skip forward two years tithe end of the term and let's see how everybody worked out so now Doug his fifty-five hundred dollars ran out before the end of the term because the2.9...