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Compared to those people who prefer to play it safe, individuals who are more comfortable taking risks are more likely to reach the top of the income distribution, or to hit the bottom, ceteris paribus.
Interest Expense
The cost incurred by an entity for borrowed funds, often documented in the income statement as a non-operating expense.
Annual Payment
A sum of money paid or received once every year, often related to loans, leases, or annuity contracts, as part of the terms of agreement.
Market Rate
The current price or cost of a good or service in the marketplace, often used in reference to interest rates or wages.
Contract Rate
The agreed-upon price or rate specified in a contract for services or goods, often locked in for the duration of the agreement.
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