337: let's say I didn't take a scholarship

Year Sum owed after interest Payment Sum owed after payment 2010 $70,000.00     2011 $73,500.00     2012 $77,175.00     2013 $81,033.75 $12,000.00 $69,033.75 2014 $72,485.44 $12,000.00 $60,485.44 2015 $63,509.71 $12,000.00 $51,509.71 2016 $54,085.19 $12,000.00 $42,085.19 2017 $44,189.45 $12,000.00 $32,189.45 2018 $33,798.93 $12,000.00 $21,798.93 2019 $22,888.87 $12,000.00 $10,888.87 2020 $11,433.32 $11,433.32 $0.00

I could borrow from someone stupid enough to lend me $70,000. Or I could split up this figure between a few stupid people, so that even with the ridiculous 5% interest rate, I could pay back less than $95,433.32 (see Exhibit) over seven years.

Comments

[yanhann]

thinking twice?

SIGH. money makes the world go round, somehow.

[xinty]

haizzz dunno.
it's crazy, the value of our bond. for me at least, forking out the bloody school fees + living expenses for 3 years (possibly even 5) is way less than what i have to pay to break the bond.

[xinty]

oh by the way, this whole loan scheme came about after Ruimin and another colleague at MTI offered to give me a study loan at a low (i.e. lower than PSC, lower than banks) interest rate. 

[yanhann]

!!! r u srz.

then again, at least the s/ship promises development and job security. try not to think abt breaking the bond at all! either you take it, or you don't take it at all. but don't you have to make your decision like, Very Soon? you know, I've kind of convinced myself that the 6 years (5 in your case) will be a good stepping stone to what I want to pursue in future. 

TALK SOON!