ECONOMICS
MONEY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Credit
|
|
|
Budget
|
|
|
Profit
|
|
|
Interest
|
Detailed explanation-1: -When you take out a loan, lenders earn money by charging interest. In other words, interest is the price you pay for borrowing money from a lender. That means, when paying back the loan, you’ll pay the amount you borrowed plus an additional sum-which is the interest.
Detailed explanation-2: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-3: -Interest-The price of using someone else’s money; the price of borrowing money. Interest rate-The price paid for using someone else’s money, expressed as a percentage of the amount borrowed.
Detailed explanation-4: -What are the Different Types of Interest? The three types of interest include simple (regular) interest, accrued interest, and compounding interest. When money is borrowed, usually through the means of a loan, the borrower is required to pay the interest agreed upon by the two parties.