Zim, If you owe $100 and the interest is 10%, you then owe $110. Then if you owe 3% the next year, the bill goes to $113.30. Then if you owe another 3% for the next year, the bill goes to $116.70. You do it again and you owe $120.20. That is $20 interest or 1/5 (20%) in four years. That is why you should always pay off your debt ASAP.
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