Paying your loan is like renting equipments.
You see, interest rate is like the rent cost of money. Its like you are employing someone elses money and you have to pay that money salary. In money, the moneys salary is often stated in terms of the ratio between money borrowed and how much you have to pay for borrowing such money. That ratio is called interest rate.
For example, if you borrow $10,000 and you have to pay $3,000 per year for not paying that $10,000 then…