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Something more to consider
As I showed in the post 365 divided in to 360 =1.0138
This is where the calculation of Principal and interest comes from. The one to the left of the decimal is principal. The numbers to the right is interest.
Of course all these numbers represent an algebra equation, 1 = X$ and .01 = X$
The interest is a fractionalization of the principal.
My understanding is the reason for principal and interest is the rate of decay. Principal, when brought in to existense begins decaying. Because it reflects the item you purchased. Credit cards usually have a high interest rate, because they usually reflect items that decay quickly in value. Autos and mortgages are lower as they decay slower (The rise in equity comes from the land, not the home).
The formula they are using is interesting when you get in to studies. What I have discovered is the actual mechanism for this is the DNA , RNA, growth and decay cycles of our bodies. It is quite a study.
It is complicated, but not necessary to know to apply acceptance. The fact they send a bill, which they have drawn Principal and possibly interest if it goes to arrears
is being sent to our principal residence. That is recognizing us as the principal.
Bill
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