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Hernandez Brothers manufactures trailers that are used by lawn service companies.The company was started in Texas by their father but has expanded in the last 12 years to include 26 sales and service centers throughout the southeast.Mostly likely, the company is using a generic strategy based on _________.
Amortized Loan
A loan with scheduled periodic payments that consist of both principal and interest, designed to pay off the debt by the end of the term.
Effective Rate
The actual interest rate earned or paid on an investment, loan, or other financial product, accounting for the effect of compounding.
Amortization Schedule
A table detailing each periodic payment on an amortizing loan, including the portion of the payment that goes toward principal and interest over the loan term.
Effective Rate
The actual interest rate on an investment or loan, taking into account the compounding of interest, as opposed to the nominal rate.
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