Tag Archives: compound interest

From time to time you hear in the news, that the central bank of Romania has changed the key interest rate. This change is rather small, in most cases 0.25% up or down. Why should I care too much about 0,25%? I have no money at the central bank anyway, you might think and switch the channel for more juicy …

Question 3: Suppose you need to borrow $100. Which is the lower amount to pay back: $105 or $100 plus three percent? Answer: $100 plus tree percent I have to be honest, I simply couldn’t believe, so many adult people would have problems to give the correct answer to that question. And it’s even harder to understand in Romania, where …