# How to Calculate Interest Volume – The % you are really paying.

## How much are you really paying in interest dollars, even if you pay cash?

## This is why just looking at interest rates has gotten so many people into financial trouble.

## We must also understand interest volume & interest velocity.

Compare how much you are paying with how much you are earning – in dollars rather than percentages.

First we will begin with how much you are really paying? Follow the instructions below.

Use these slides to help you figure out how many interest dollars you are paying financing institutions and compare it to how many interest dollars you are earning on your investments

## Now compare to how much you are really earning, in dollars, not percentages.

100% – 50% = 50% + 100% = 150% – 50% = 100% / 4 years = 25% average rate of return

An Average 20% rate of return can mean multiple things for you. An Average 20% ROR can mean the difference between a $440 increase over two years or a loss of everything. If you don’t look at the dollar amounts and only focus on rates of return, you don’t really know what is going on.

Average rate of return is math calculation. Actual rate of return is a Money Calculation. Math is Math. Money is Money. Math is not Money.

A Mutual Fund can legally, morally and ethically advertise that they are getting an average 20% return for any of the following scenario’s

March 18, 2012
· Jennifer · One Comment

Tags: How to calculate interest volume, Interest Volume · Posted in: DEBT ELIMINATION, INTEREST 101 - rate vs cost, Interest VOLUME, L21) Diagnosing Debt

## One Response

Son - July 17, 2014

Thank you!

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