I just got home! I stopped by my mother's house and she asked me my opinion about loan terms. She asked how much will be the total due of a 10% a month for 5 months loan worth of 40,000? This is my explanation. 40,000 / 5 months = 8,000 and 40,000 * 10% = 4,000 8,000 due plus 4,000 interest will be the total payment per month for 5 months. That will be 60,000 after 5 months. 20,000 interest. Then she presented me this term. She said if it could be paid 10,000 per month for 5 months and then the interest will be 1,000 on the first month and will be added by another 1,000 each per month. So it will be paid like this... 1st month -11,000 2nd month - 12,000 3rd month - 13,000 4th month - 14,000 5th month - 15,000 The total payment is amounting to 65,000! 25,000 worth interest???! That is very ridiculous and very brazenly greedy. Does that kind of term even exist? If I am the one borrowing that kind of money, I will find a loan that can offer 5% interest a month. That is all that I will willingly be leeched off.