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Pay back more than borrowed
Money grows over time
% charged for borrowing over time
Principal×Rate\text{Principal} \times \text{Rate}Principal×Rate
(Interest÷Original)×100(\text{Interest} \div \text{Original}) \times 100(Interest÷Original)×100
Starting point for bank interest rates
Higher interest rates on loans
Higher interest rate offered
P×R×TP \times R \times TP×R×T
Cash much cheaper than hire purchase
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