Igor the loanshark is harrassing you because you haven’t paid back that loan of yours. He is not very clever so he says “pay me 10% on the 1000 that you borrowed”. You have had the loan for 1 year so you ask if it is calculated annually? He thinks your are stupid and says “of course it is” and kicks you out. If he would have said quarterly, then how much more in interest would you have had to pay?