Question

Interest rates are expressed as a percentage of

Answer 1

The principal

Step-by-step explanation:

If you get a loan for $1000 interest rates will always be charged on that $1000, which is the principal.

Answer 2

The Correct Answer is "The Principle"

Step-by-step explanation:

• Generally, an interest rate is an amount that is added on top of the principal amount most especially in loans. This is expressed in the form of a percentage, depending on the amount and interest rate being agreed upon.
• Interest is, therefore, the amount of money charged by a financial institution such as banks on money borrowed from them by customers.