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Credit cards are one of many ways through which people borrow money. With a credit card, a person can make purchases without using cash. The credit card company pays for the purchase, but the card user has to repay the money borrowed to the card company at a later time. In addition to the amount of the purchase, the card user also has to pay interest on the loan. Interest on a loan is calculated as a fixed fraction of the loan amount and is charged for the time period of the loan

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