A loan in which the borrower promises to repay the borrowed amount plus a predetermined rate of interest is called a(n)________.

Question

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The word "loan" implies that money is being borrowed and needs to be repaid. When a borrower agrees to repay the borrowed amount plus interest, that is known as a debt. This is a common way for individuals and businesses to obtain funding, as they can borrow money and then repay the loan in smaller, regular payments over time. Options A, B, and C do not accurately describe this type of financial transaction.

A Loan in Which the Borrower Promises to Repay the Borrowed