ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a charge for lending money
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the amount owed for borrowing money
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the amount added into your savings account when opening a bank account
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a charge for convenience of accessing money in your bank
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Detailed explanation-1: -Interest is the money you owe when borrowing or receive when lending. Lenders calculate interest as a percentage of the loan amount. Consumers can earn interest by lending money (such as through a bond or certificate of deposit) or depositing funds into an interest-bearing bank account.
Detailed explanation-2: -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).
Detailed explanation-3: -Interest is the monetary charge for borrowing money-generally expressed as a percentage, such as an annual percentage rate (APR). Interest may be earned by lenders for the use of their funds or paid by borrowers for the use of those funds.
Detailed explanation-4: -Interest is the amount of money a financial institution charges for letting you use its money. The rate of interest can be either fixed or variable. Fixed rate means the interest rate stays the same throughout the term of the loan. Variable rate means the interest rate might change during the loan term.
Detailed explanation-5: -Interest is the price you pay to borrow money. When a lender provides a loan, they make a profit off of the interest paid on top of the original loan amount. Interest rates affect the true amount you pay for homes, cars and other purchases made with credit.