What refers to the amount of money paid for the use of borrowed capital? A. Interest B. Rate of interest C. Simple interest D. Principal

April 15, 2024 by rawan239

It is usually calculated as a percentage of the principal amount borrowed, and is paid over a period of time. The interest rate is the percentage of the principal amount that is paid as interest each year. Simple interest is the amount of interest paid on the principal amount only, while compound interest is the amount of interest paid on the principal amount plus any interest that has already been earned.

Here is a brief explanation of each option:

• A. Interest: Interest is the amount of money paid for the use of borrowed capital. It is usually calculated as a percentage of the principal amount borrowed, and is paid over a period of time.
• B. Rate of interest: The rate of interest is the percentage of the principal amount that is paid as interest each year.
• C. Simple interest: Simple interest is the amount of interest paid on the principal amount only.
• D. Principal: The principal is the amount of money that is borrowed.