4 ms·
why is 3% for 10 years 26%?
by zht 10y ago
why is 3% for 10 years 26%?
- Nullabillity 10y agoYou're thinking 3% of the original amount, rather than 3% of the remaining amount. If you pay 3% then 97% remains. 0.97^10≃0.74, meaning that you've lost 26%.