Interest is the payment for the use of funds used to produce capital.

Name: Interest is the payment for the use of funds used to produce capital.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

Interest is defined as the payment made by a borrower to a lender for the use of funds. This payment compensates the lender for the time value of money and the risk of lending funds. The funds provided by the lender are used to produce capital, which generates income or profits for the borrower.

Interest Is the Payment for the Use of Funds Used