What is the typical relationship between time and interest rate?
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The longer you take to pay back a loan, the higher the interest will be. That is because they don't want to wait for a long time, so if they have to, they're gonna get a lot back. For example, if you take a thousand dollars loan with an annual interest rate of 5 percent, that means that every year the 5% will be calculated, not just the first year you took it.
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