BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
____ is the total amount that a borrower must pay annually to the lender and above the total amount borrowed.
|
|
Inflation
|
|
|
Interest rates
|
|
|
Changing of options
|
|
|
People’s spending habits
|
Explanation:
Detailed explanation-1: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-2: -Principal The amount of money you agreed to borrow is considered the principal. As you repay your loan, the principal balance decreases. The principal amount does not include the interest you owe.
Detailed explanation-3: -The interest rate is the amount a lender charges a borrower and is a percentage of the principal-the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).
There is 1 question to complete.