Borrowing money cost money, when you borrow money, the total amount of money you owe grows by 2.9 percent in your case.
So every year the money will be 1.029 times the previous years amount.
when u put money in a CD(which is you loaning your money to the bank for a certain period), the toal amount u get at the end of the loan period:
principal(1+int rate)^n years
Now when you take out a monthly loan, in which your owed amount gets deducted every month because you are paying back the bank every month, then things get a little complicated.
The money you owe gets reduced bit by bit when you pay your loan every month, the interest is growing on a lesser and lesser borrowed amount as times goes by as opposed to a bigger and bigger amount in the CD example.
Fortunately, we have something called calculus to sort out this crap, there is a mathmatical formula for this, I think its based on a converging geometric series?(forgive me, its been a while)
That formula is posted above in one of the posts.
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