C
General
Compound Interest
Interest on interest. When you save, it's your best friend — your money grows faster because the interest itself earns interest. When you borrow and don't pay, it's your worst enemy — your debt explodes. Time magnifies everything.
Usage Examples
"Bongani put R10,000 in a Capitec savings account earning 7% compound interest. After 5 years, it's R14,025 without adding a cent. That extra R4,025 is just interest earning interest. Mad."
"Andile borrowed R5,000 at 20% interest from a mashonisa and didn't pay for 6 months. The debt doubled because of compound interest. He owed R10,000. That's why people say don't mess with mashonisas."
"Nomsa's credit card balance of R2,000 had a minimum payment of R50. She paid minimums only. Compound interest meant that R2,000 took 4 years to clear, and she paid R2,800 in interest alone. The balance barely budged."