Reducing Rate Vs Flat Rate #youtube #bank #reducingrate #flatrate #viralvideo

Reducing Rate: Interest or fees calculated on the decreasing outstanding balance over time, often resulting in lower payments as the principal reduces, common in mortgages and investments.

Flat Rate: Interest or fees calculated on the original principal amount throughout the loan or investment period, leading to constant payments and higher overall costs for borrowers, often used in personal loans and hire-purchase agreements.

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