Interest is the difference between the amount borrowed and the principal.

Name: Interest is the difference between the amount borrowed and the principal.
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Quizplus · Accepted Answer

Interest is not the difference between the amount borrowed and the principal, it is the cost of borrowing and is calculated as a percentage of the principal. The total amount payable, which includes the principal and interest, is the amount borrowed plus the cost of borrowing.

Interest Is the Difference Between the Amount Borrowed and the Principal