One can think of interest as:
A)the cost of inflation.
B)the price of borrowing per dollar.
C)the time it takes a bond to mature.
D)All of these are true.

Question

Quizplus · Accepted Answer

Interest is essentially the price paid for borrowing money, which is typically expressed as a percentage of the total amount borrowed. It compensates lenders for the risk of loaning money and for the opportunity cost of lending that money out instead of using it for other purposes.

One Can Think of Interest As