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Discuss the three primary methods of execution and the common problems encountered with each method. Identify which method is primarily used.
Fixed Monthly Payments
Regular, unchanging payments made each month for a period of time, often used in loans and lease agreements.
Promissory Note
An investment vehicle that features a concrete promise by one entity to pay a definitive money amount to another, either upon solicitation or on a specified date.
Legal Due Date
The specific date by which a legal obligation must be satisfied, such as the payment of debts or completion of contractual duties.
Principal
The original sum of money borrowed in a loan or the amount of the investment.
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