Millionaire Son in Law Chapter 3637
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- The Wade family’s financial acumen is put to the test against high-interest installment plans.
- Joseph presents the Wade family members with a strict ultimatum regarding their financial obligations.
- Milton unexpectedly becomes the first to agree to Joseph’s installment terms.
Although these side members of the Wade family were not top entrepreneurs, they were still much smarter than those mindless youngsters who could use credit card installments.
Those brainless youngsters thought that paying in installments was a very cost-effective thing to do, but they didn’t know that the bank had thoroughly eaten into their psychology.
The interest rate for each installment is six thousandths. It seems that ten thousand dollars is divided into twelve installments.
It’s only an extra sixty dollars a month, but twelve installments a year is seven hundred and twenty dollars! That’s not any less of money to ignore.
That’s a 7.2% APR for a year’s installment relative to the principal of $10,000! That’s also a good example.
This is just a rough calculation. You should know that $10,000 is not paid back once a year, but in 12 monthly installments.
The principal amount is decreasing in each installment, but the interest rate is fixed once. With a principal of $10,000, the actual interest rate is even more than 13% if you calculate it this way!
This interest rate is a huge profit in the financial market.
Every one of these Wade family members has a very good relationship with banks and capital. If they really want to take out a loan, they can easily get a large loan with an actual annualized interest rate of less than 5%.