TED Conversations

Ahsen Mukhtiar

Student & Researcher,

This conversation is closed. Start a new conversation
or join one »

Can we live without compounding interest rate?

It is an established fact that interest is oppressive in any form to anyone. Individual debtor or government all have to suffer. I am not an expert but to me it seems to be a vicious trap. Compounding rate are always on the rise increasing debt many folds in no time. Some would say that same compounding applies to savings account then why its bad? but time value of money shows that currency depreciates more quickly than other specially in Debt seeking countries.

+1
Share:

Showing single comment thread. View the full conversation.

  • thumb
    Aug 26 2013: I wish i could many thumbs up to your response. You cleared some of my doubts about fixed rate. Last two paragraphs clearly pointed out new aspect for me. Id rate would be fixed them people would not adhere to commitments seriously.

Showing single comment thread. View the full conversation.