Why You Should Pay High Interest Loan First

Paying your loan is like renting equipments.
You see, interest rate is like the rent cost of money. It?s like you are employing someone else?s money and you have to pay that money salary. In money, the money?s salary is often stated in terms of the ratio between money borrowed and how much you have to pay for borrowing such money. That ratio is called interest rate.
For example, if you borrow $10,000 and you have to pay $3,000 per year for not paying that $10,000 then your interest rate is $2,000/$10,000=30%. Simple?
That?s assuming that the money you borrow is constant, namely $10,000. If you don?t pay your interests, then the $3,000 is added to your loan. So next year, you owe $13,000. Two years from now, you?ll owe $16,900. Got it? In Math, few functio View the rest of this article