Compound interest – the rate of doubling

One of the key problems in understanding debt obligations is the relationship between the interest rate and the financial obligations. Compound interest is among the most commonly used phrases, yet least understood.

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News: Iceland’s interest is 11%

The Globe and Mail’s Report on Business highlights the telling difference between those that succumb to sovereign insolvency and those who can afford to stave it off – While America, Canada, and most of Europe have near-zero central bank interest rates, Iceland’s interest rate is down from a whopping 18% to a hardly paltry 11%.
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