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  • E.G.  you loan a car worth $70000 with an interest of 30% for 5years. $2,599,051 is the amount that you're going to pay for 5years, annually.
  • why not? Wait a minute, Let me process your papers first.
  • What if we loan right now a car worth $70000?
  • But, We can't afford to buy a brand new car
  • I think we should buy a new car because anytime this car can bring us to death anytime soon
  • I HAVE AN IDEA! What if we put our remaining money in the bank so that our money is safe and secured at the same time the amount of our money is getting bigger from time to time so we can buy a brand new car.
  • C'mon, Let's go to the bank and ask it to them..
  • How sure are you that our money will grow if we invest it in the bank?
  • The couple decided to go in the Philippine Bankrupt Bank which the well known bank in their country
  • Good Morning ma'am and sir! Welcome to Philippine Bankrupt Bank, How may I help you?
  • We would like to put our money in the bank. Also, We want to know the terms and condition of this bank.
  • Sure! Let's come inside my office so I can discuss it properly.
  • Compound Interest than Simple Interest
  • because it is calculated both in the principal amount and on interest of previous periods, and or simply " INTEREST ON INTEREST"
  • why do you keep using compound interest than simple interest?
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