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What changes if income and repayment use different currencies?
The same foreign-currency instalment can require a different amount of local income as conversion changes.
Transfer costs and timing can also affect what reaches the provider.
Identify the currencies and exchange process in the agreement and budget scenario. A teaching example should not invent an exchange forecast or imply that a current conversion stays fixed.
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Definitions
- Cash-flow timing
- Dates when income arrives and payments leave, distinct from their total over a month.
- Budget scenario
- An explicit set of income and expense assumptions used to explore a possible payment without treating it as personal advice.