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When individuals make decisions about how much schooling to obtain, they
Maturity Value
The total amount that will be paid to an investor at the maturity date of a debt instrument, including principal and any accrued interest.
Interest
The cost of borrowing money, represented as a percentage of the total amount loaned, or the income earned on deposited funds.
Bank Discount
What the bank charges to hold a note until maturity (Maturity Value – Proceeds).
Discount Period
The window of time during which a payment can be made at a reduced rate.
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