A finished FIN-210 Topic 3 debt repayment order comparison example, running one household's three debts under two payoff orders and pricing the difference in interest and months. Searches like "fin 210 topic 3 assignment example", "fin210 topic 3 sample" and "fin-210 topic 3 example" land here.
What a finished FIN-210 Topic 3 debt repayment order comparison looks like
The finished comparison lists three illustrative debts: a card of 4,500 at 24 percent, a second card of 1,100 at 17 percent and a personal loan of 2,600 at 11 percent. The household can commit 500 a month in total, and minimums are paid on every account before any extra goes anywhere. Paying the highest rate first clears everything in 19 months with about 1,229 of interest. Paying the smallest balance first takes 20 months and about 1,529, so the gap is roughly 300. The example then sets that figure beside the other result the schedules produce: smallest first closes an account in month 5, highest rate first not until month 14. It weighs the two honestly and states which order the household adopts.
How a FIN-210 Topic 3 example is structured
The comparison is built as two schedules and a judgment between them. A brief opening introduces the composite household, its three debts with balance, rate and minimum payment, and the fixed monthly amount available. The first schedule applies extra payments to the highest-rate card and rolls each freed minimum into the next debt, tracking balance and interest month by month. The second schedule runs the same money in smallest-balance order. A summary table puts the two side by side on total interest, months to debt-free and the month the first account closes. A paragraph interprets the 300 difference against the household's own history, since the case says it has abandoned two earlier payoff plans. The closing section names the order chosen and the circumstance that would make the household switch.
Minimums paid before any extra
Every account receives its required payment each month first, and only the remainder of the 500 is directed by the payoff order under test.
Freed payments rolled forward
When a debt closes, its former minimum joins the extra payment on the next account, which is what lets both schedules finish inside two years.
Interest counted in dollars
The two orders differ by about 300 of interest in the case figures, a dollar amount the household can set against its own experience.
The first closed account dated
Smallest balance first shuts an account in month 5 while highest rate first waits until month 14, and the example treats that gap as real.
The household's own record considered
Two abandoned plans in the case history bear on which order will actually be completed, and the judgment names them instead of ignoring them.
Where marks go in FIN-210 Topic 3
Declaring one order correct without running either schedule is where most comparisons lose ground, because the topic asks for the difference in money and an argument from principle never produces it. Schedules that forget to roll a freed minimum into the next debt overstate the time and interest for both orders. Comparing on interest alone is marked down as well, since a plan the household abandons in month eight saves nothing at all. The opposite error, praising early wins without pricing them, gives no way of deciding whether 300 is worth the motivation it buys. Minimum payments skipped in the arithmetic make one card appear to grow while another shrinks unrealistically. A conclusion with no condition for switching orders treats the plan as fixed when circumstances rarely are.
Get a FIN-210 Topic 3 example written to your instructions
Send the FIN-210 Topic 3 instructions and the rubric listed in your classroom, with the debts or case your section uses. We write a custom example to that rubric, with both payoff orders scheduled month by month, freed payments rolled forward, the interest gap priced in dollars and a reasoned choice made, in 24 to 48 hours. The first one is free.
FIN-210 Topic 3 questions, answered
What does paying only the minimum cost?
Take an illustrative 3,000 card balance at 22 percent, with a minimum of that month's interest plus 1 percent of the balance, It takes about 177 months to clear and costs roughly 4,360 in interest. A fixed 150 a month clears the same balance in about 26 months for roughly 770. A minimum is set to keep an account current, not to retire it.
Why roll a paid-off minimum into the next debt?
Because otherwise the money freed by closing an account drifts into general spending and the plan slows down. Keeping the total monthly commitment constant means each closed debt accelerates the next one, which is why both orders in the example finish in under two years. Without the roll-forward the schedules stretch considerably, and the comparison between orders becomes much less informative.
Is this advice about which debts to pay first?
No. The example answers a coursework question for a composite household with invented balances. Real repayment choices can involve hardship programs, balance transfer fees, secured debts with collateral at stake and credit counseling options that the assignment does not model. The comparison demonstrates how the choice is priced; it does not make that choice for anyone outside the case.