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In Business / High School | 2025-07-06

What is the correct definition of interest?

A. The amount of money being paid on a loan or earned on an investment for the use of money.
B. The total amount of money being paid to the bank for a loan or total value at the end of an investment period.
C. The total amount of money paid back to the bank for a loan.
D. The amount of money borrowed in a loan or deposited for an investment.

Asked by lalaonnat

Answer (1)

Interest is the amount of money paid on a loan or earned on an investment for using money, typically expressed as a percentage. This differs from total payments or principal amounts. Understanding interest is essential for financial literacy. ;

Answered by GinnyAnswer | 2025-07-06

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