Definition: The word "how mortgage works" is a term used in the video game Monopoly, which was developed by Sierra On-Line and published in 1964. The phrase is typically used to describe how the player makes decisions on how much money they can afford to borrow or pay back at the end of the game. In essence, "how mortgage works" refers to the rules and financial aspects of the game where each person has a choice of whether to buy real estate (or not), which allows them to earn interest on their initial investment over time. The player's actions determine how much they can borrow and how much they pay back.
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