This presentation conveys two approaches to paying for major capital purchases: paying with financing or paying with cash. |
There are two ways to pay for major capital purchases. You can finance the purchase with other people's money by borrowing from a lender and then repay the principal and interest until the loan is paid in full. Or you can finance by borrowing from your savings or investment accounts and then replace the funds and lost interest. However, is should be said that few people return the money they borrow from their own accounts and fewer replace the interest lost. Let's illustrate these two options... [the presentation continues identically to Finance 101] |
No math presented on this screen. |