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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 (2)

Interest is the payment made on a loan or earned on an investment for the use of money. It can be classified as simple interest, calculated on the principal alone, or compound interest, which includes accumulated interest over time. The correct choice from the options given is A.
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Answered by Anonymous | 2025-07-06

Interest is the amount of money paid on a loan or earned on an investment. It represents the cost of borrowing money or the reward for saving. Understanding interest is crucial for managing loans and investments effectively. ;

Answered by GinnyAnswer | 2025-07-06

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