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1. Explain the meaning of the phrase the Essence of Credit? 
The transfer of value (money, goods, and/or services)from the creditor (or lender) to
the debtor (or borrower) in the present (i.e. present value or PV), with the creditor
(or lender) receiving in exchange a claim against the future incomelcash flow and
assets of the debtor (or borrower).
2. Two of methods for calculating interest on a debt obligation are "simple interest--add
on" and "simple interest-discount". Describe the similarities and differences between
these two methods. 
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