Banks are Bloodsuckers!
I had never realised how much hard earned money a bank can suck out of a person. Its simply appalling!!Imagine a loan of $1,000,000.00 to be paid over 20 yrs at an interest of 6.3% per annum. On surface it might look like one is paying $63,000.00 (6.3% of 1,000,000.00) as interest for the entire loan. However, this is not how the bank operates.
Interest is calculated on a compounded basis - so your interest owing is calculated based on your balance owing to the bank at the end of every month for the next 20 years. According to this format, at the end of the 20 years loan repayment period - a whooping $660,000.00 would have been paid as interest!!!
Is that draining your blood or what??
The way I see it, banks are just a legalised form of loan sharks... At least loan sharks do not try to conceal the interest they charge in cleverly obscured language...
Update: In fact the total interest accrued after 20 years for a 1 million loan is $711,000.00!!!
Jolll Meowed at 12:40 pm
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