ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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principal
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interest
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mortgage
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tax
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Detailed explanation-1: -The amount owed is called the principal and the price of borrowing money is called interest. Some people spend a day’s pay (or more) per week repaying the interest and principal owed on car loans, credit card bills, student loans, and other consumer debts.
Detailed explanation-2: -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-3: -Interest. 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.