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Each payment reduces amount owed and interest on remaining balance
Payment no., amount, interest, principal change, balance
Decreases with each payment as balance becomes smaller
Increases with each payment
Regular payments build savings for retirement
9.5%9.5\%9.5% of income
Regular contributions and compound interest
FV=PV(1+r)nFV = PV(1 + r)^nFV=PV(1+r)n
I=FV−PVI = FV - PVI=FV−PV
Loans decrease, investments increase over time
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