The amount of money a lender requires for the use of funds is called
A) Interest
B) Principal
C) Internal rate of return
D) Present discounted value

Question

Quizplus · Accepted Answer

Interest is the amount of money a lender charges for the use of funds, usually expressed as a percentage of the principal borrowed. Choice B) Principal is the amount of money borrowed, not the cost of borrowing. Choice C) Internal rate of return and choice D) Present discounted value are both financial metrics used for investment analysis, not the cost of borrowing.

The Amount of Money a Lender Requires for the Use