I have a job in about 2 weeks. For the job I need to buy some equipment (music gear). If I buy new it is $1000. I can picked up the exact same item for $500 barely used. The job is going to pay around $2500 so I can pay off both immediately.
My question is, if I do cash advance there is a 3% fee plus 23% interest.
I always pay off everything right away so I dont understand interest charges. This is a Chase frrdom card.
So can someone please help me calculate, if I pay this off in 30 days how much is 23.9% (roughly) on my $1000??? I dont multiple 23.9% X $1000 do I? That would be roughly $300. The lady at Chase said it would be around $20 for the interest if paid off in 30 days. I dont get how that works. Can someone please expain.
PS... I dont have the cash or would just do that. But If I can save $300 or $400 by buying this thing used it will help me out a great deal.
Perfect. Thanks for your help. I get it now
the 3% fee on $500 would be an additional $15, still doing better than purchasing new though
I agree with the above posters. Would still be a substantial savings.