The interest rate:
A) is the price of borrowing money for a specified period of time.
B) is expressed as a percentage per dollar borrowed and per unit of time.
C) determines the total amount that must be paid back on a loan.
D) All of these are true.

Question

Quizplus · Accepted Answer

All of the choices are true. The interest rate is the cost of borrowing money for a set period of time, usually expressed as a percentage per dollar borrowed and per unit of time. This percentage rate ultimately determines the total amount that must be paid back on the loan.

The Interest Rate