Compound interest is quite simply the way that debt grows.  If someone wants to borrow then they must understand what compound interest is and how it can make debt increase.

Interest is neither good nor bad.  It is only the price that a person pays to have the money now rather than getting the money later.  It is also the price that is paid to the lender for not spending the money as soon as they get it, but letting another person use it.  It also reflects the risk that the money may not come back and the administration that is involved.
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