Zainab borrows $20,000 from a bank to pay for her education.The bank charges her five percent of the amount she borrowed,that is,$1,000.In this scenario,the five percent represents the:

Question

Quizplus · Accepted Answer

The five percent represents the interest, which is the cost of borrowing money. In this case, Zainab pays $1,000 as interest on the $20,000 she borrowed for her education.

Zainab Borrows $20,000 from a Bank to Pay for Her