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CLE Curriculum: Dollars and Sense Simulations

Lesson 6: Compounding Your Interest in Loans

From Dollars and Sense: Our Interest in Interest

Over the lifetime of an Installment Loan, you will be affected by other factors that compound over time. INCOME, for example (Income can change by some percentage every year - or not!); INFLATION (the value of your money); and, finally, the VALUE of what you are buying (it can either APPRECIATE or DEPRECIATE annually). Understanding how all these changes work may help inform your choosing a loan plan that works best for you...

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