[The Ghost of FReepers Past]

The lower amount is plus 3%, which is 103. Is there a trick to this that I am missing?

[BRL]

Hard this say because I did not see a time frame

[Magnum44]

Doesn’t it depend on the length of the loan and how the interest rate is compounded? A ten year loan with a daily compounded interest rate of 3% will give you a different answer. The length of the loan being more a factor than the compound rate.

[all the best]

No trick. The point is people are so stupid as to not even know something so fundamental.

[HotHunt]

No trick I guess. It's just that many people are not financially knowledgeable. From years of seasoning and experience, I realized early on when I was a young adult, that not everyone walking among us is a rocket scientist.

I had a high school friend of mine (when we well into our 50s) call me up onetime for help with his mortgage. I was a mortgage banker at the time and he figured I could help. His problem was that he and his wife had a big fight (over money or the lack of it because of their high spending habits), separated and now had decided to get a divorce. His wife paid the bills and stopped paying the house loan with they separated and now the mortgage lender was on his doorstep foreclosing. He could not understand that when his wife stopped paying the monthly payments on the mortgage, that put the loan into default. He had lost his job and she got a lower paying one but they didn't have any savings from which to bring the loan current. In situations like this, the lender requires the loan be brought current and won't allow partial or smaller payments to try and catch up. The longer I talked to him explaining the basics of the financial world he was in, the more I realized he didn't have a clue about financial affairs and had skated through life not knowing what he was doing with his money. He was basically, a financial illiterate. He eventually lost the house but never understood the process.

How adults can go their whole life without learning the basics about how things work, is beyond me.

[SeekAndFind]

RE: The lower amount is plus 3%, which is 103. Is there a trick to this that I am missing?

You belong to the 49%.

[ProtectOurFreedom]

Yes. They didn't specify which "(country currency)." It makes a huge difference if you don't have all the required information to solve a problem.

jk

[svcw]

The questions are so poorly written, it’s amazing anyone could answer anything.

[Ruy Dias de Bivar]

Back in 1977, I tried to borrow $100 dollars from an Oklahoma bank. The interest was 25%. I was desperate and agreed to those terms. Then they turned me down.

When I retired in 2008, I put my retirement funds in a different bank. I always remember how the Oklahoma bank lost my accounts because of this.