ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When you borrow money you have to pay more money to the person you borrowed it from. This is called ____
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Opportunity cost
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Interest
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Invest
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None of the above
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Explanation:
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: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-3: -A debtor is an individual or entity that borrows money from another individual or entity and needs to pay that money back within a certain time frame, with interest. For example, a person who borrows money from a bank to buy a house is a debtor.
There is 1 question to complete.