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10 cards from this deck
Financial arrangements where people borrow money
Money has time value; lenders give up use of their money
Amount paid monthly towards loan (principal + interest)
One-time charge to process loan application
Additional monthly cost for administrative services
Lower monthly payments
Higher total cost (more interest paid)
Init fee + [instalments × (monthly payment + admin fee)]
Higher total cost overall
Higher monthly payment but lower total cost
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