ecurbj said:
So your telling me that if I took out a loan for $1000 and the interest rate is 10% for 10 months. I have to give them back the $100 plus the interest? So my payments would be say for example I'm giving them back $100, I would also have to pay $110 which makes it $210 I'm actually paying them a month? |
This example is not compound interest, but I will keep with the example he presented.
What he is saying, is if you took out $1000 loan from your parents, and they charged you 10%, you would owe them a total of $1100. $1100 divided by 10 months, means you will have to pay them $110 a month.
Sadly, real interest is a lot scarier, so I would suggest living your life paying as little of it as posable. (don't live off of credit)