Lesson 21 of 25 · 6 min

Several individually affordable payments

Five payments each below a round number are still one sum against the same cash date.

Lesson 12 stacked three BNPL tickets into $122. This lesson stacks five invented payments that are each below $500 and treats the count as uninformative. Track 7 lesson 1 is concentration: what looks like several positions is one position once they share a reason to move. Here the shared reason is the cash date.

Five invented payments: $485.52, $214.00, $96.00, $160.00, $75.00. Each is below $500. The sum is $485.52 + $214.00 + $96.00 + $160.00 + $75.00 = $1,030.52. Five is the count. $1,030.52 is the position. A month that can meet $485.52 has not thereby met $1,030.52. The test is the sum, which is lesson 20's numerator with the housing line taken out so the five small claims can be seen as one claim.

Track 7's concentration lesson does not count names. It asks whether the names are independent. Five due dates in one month are not independent of that month's cash. They are five lines on one date. Lesson 22 puts a repair and a lost shift on top of this $1,030.52. This lesson stops at the addition. The addition is the whole of the event.

Each payment is below $500. The position is $1,030.52. Count is uninformative. The sum is the claim on the date.

Key terms

Individually small payment: A single claim below a round number. On this page, each of the five is below $500.
Sum on the cash date: The five added. $1,030.52. The figure the month is tested against.
Count: Five. Uninformative for capacity, the way Track 7 treats a count of holdings as uninformative for concentration.

Worked example

Five lines, one addition

Five invented payments due the same month: $485.52, $214.00, $96.00, $160.00, $75.00. Each is below $500.

Payment 1: $485.52
Payment 2: $214.00
Payment 3: $96.00
Payment 4: $160.00
Payment 5: $75.00
Sum: $1,030.52

Five payments each below $500 are $1,030.52 on one cash date. The month is tested against the sum.

Check yourself

Five invented payments due the same month: $310, $95, $80, $125, $60. Each is below $350. What is the sum, and what is the count doing as a measure of the claim?

Five small claims on one cash date are one large claim, the everyday version of Track 7's concentration: count is uninformative, the sum is the position. Open Why one name and forty names are not the same collateral →

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Educational only. Nothing in this lesson is investment, legal or tax advice, or a recommendation to enter into any transaction. Figures are illustrative and computed from the inputs stated in the lesson.