Practice mode Accounting

From the borrower’s point of view, what is the compensation paid to the lender for using borrowed funds called?

Correct answer B. Interest Rate

Explanation

The interest rate is the price of borrowing money: it is the cost to the borrower and the return to the lender for the use of funds over time.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.