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Financial Literacy · F1.3

The Price of Borrowing

Step 1 of 7. A question to start.

One sofa, three ways

The sofa costs $8,000. Paying over time costs more than that.

The shop adds interest for letting you pay later.

A longer term means smaller payments but more interest.

A bigger down payment means borrowing less.

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The sofa costs $8,000. Paying over time costs more than that.

The shop adds interest for letting you pay later.

A longer term means smaller payments but more interest.

A bigger down payment means borrowing less.