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Glossary

Amortize: To pay off in regular installments over a loan term.

Appreciation: The value that an asset gains over a period of time, as opposed to depreciation.

APR (annual percentage rate), Interest Rate: The yearly rate charged to a consumer to borrow the finance company's money. APR is usually expressed as a percentage. If your interest rate is 7.5%, you will pay $75 per $1000 borrowed.

Asset: The items of value that you own.

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