Time has value. The total number of dollars isn't the only factor; there's also the date on which they're paid.
Remember the Russian million-dollar lottery?
Halfway through the loan, the borrower hasn't paid the lender more than the value of the loan. (The value of the loan in 15-years-later dollars is around $250,000, being $100,000 plus interest.)
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Remember the Russian million-dollar lottery?
Halfway through the loan, the borrower hasn't paid the lender more than the value of the loan. (The value of the loan in 15-years-later dollars is around $250,000, being $100,000 plus interest.)