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Explain the stress tug-of-war analogy.
Inflation Rate
A situation where the overall cost of goods and services climbs, causing the value of money to diminish.
Annual Percentage Rates (APRs)
A measure of the cost of credit, expressed as a yearly interest rate, that includes interest, fees, and other charges associated with the loan.
Compound Interest
Interest calculated on the initial principal which also includes all of the accumulated interest from previous periods on a deposit or loan.
Simple Interest
Interest calculated on the principal portion of a loan or deposit, without compounding over time.
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