Add new comment

Permalink

Dear John,
I'm struggling to understand the example for compound interest deception.
If the guy borrows 2000 sterling and has to pay back 2100 then annual interest rate is surely 5%.
Where is the 9% coming from? You use expression "true interest rate", am I missing the point?
I'm sorry if this is a bit blunt, I just like maths and to understand it, hence the challenge with deception for compound interest. Matt

Filtered HTML

  • Web page addresses and email addresses turn into links automatically.
  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
  • Want facts and want them fast? Our Maths in a minute series explores key mathematical concepts in just a few words.