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Which of the following may involve external benefits?
Effective Rate of Interest
The actual interest rate earned or paid on an investment or loan, considering the effects of compounding.
Rent-to-own Transaction
A leasing agreement that includes a clause allowing the lessee to purchase the leased item at the end of the lease term.
Cash Price
This refers to the actual amount of money that must be paid to purchase a good or service without financing.
Periodic Payment
Payments made at regular intervals, such as monthly or annually, often associated with loans or annuities.
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