If we were farmers, we'd be eating our seed.

That's why we say it compounds.

Hey, how's your son?

How's my son, Agent Gibbs?

My mortgage actually might be something like 4,000 a month.

That's the interest rate.

Let's say they have no interest expense.

I don't know what a good rate is, 6 ?

So just as a review, let's say I'm running some type of a bank and I tell you that I am offering 10 interest that compounds annually.

I also want 100 of that.

Let me write that.

So 5 on 100,000 is 5,000 per year in interest.

I'll have to take a 750,000 mortgage.

His mother had the right to see her son.

If our earnings are 350,000.

And then we could take this down.

Accrued interest will be paid into your account.

Interest. Weekly.

At the moment, however, this money was not nearly sufficient to permit the family to

Takemoto

I understand that.

So, for an extra 20 ...

So 110 plus now 11.

He paid the loan with interest.

And of course the difference is the money that he had to spend on tax.

That's... 65,625 with interest.

So he makes 2,000.

But for the simplicity of this argument,

I would get 1 million from them.

But I didn't get well how to use it.

Number of payments per year

Well I'm paying 750,000 times 6 a year.

That's called paying off the principal.

You manage, the village manages these warehouses.

100 interest.

It just so happens we got your money, man, plus interest.

And then you're going to get a mortgage on 45,000, right? 45,000, you're going to borrow.

I returned the book to its shelf.

And I said, John, where's your son? And how is he?

That's not bright enough.

So principal amortization just means, well, if I just keep paying this mortgage, after how long is the entire principal amount not just interest, how long is the entire principal amount going to be paid off in?

But just so you know what EBlT is, EBlT is just Earnings

Can a bank just continue issuing loans and checking accounts indefinitely and essentially collecting the difference in the interest between the interest it gets on the loan and the interest it gives on the checking account?

The struggles, the victories that aren't really victories, the defeats that aren't really defeats.

After that I work my way gradually across to the coast, visiting the points of interest on the journey.