ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A sum of money lent to a borrower at some interest rate.
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A sum of money that you give to charity.
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The amount of money that you get from the IRS.
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Schumer Box Fee
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Detailed explanation-1: -The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest or finance charges to the principal value which the borrower must repay in addition to the principal balance.
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: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-4: -The correct option is A loan. The amount of money borrowed from the bank is called the loan, and the extra amount of money paid back to the bank other than the loan is called the interest.
Detailed explanation-5: -Here, principal is the money borrowed or lent out for a certain period of time. It is represented as P. Similarly, the rate of interest is the rate of money paid regularly using money lent. Thus, we got that principal is the money borrowed / lent out for a certain period of time.