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Grace got a loan of $500 from her bank, and she had to repay it with $550. Which term describes the extra money Grace had to pay?

2 Answers

4 votes

Answer:

interest

Step-by-step explanation:

User Cosmina Palade
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5 votes

Answer:

The term that describes or states the extra amount of money is the Interest.

Step-by-step explanation:

As Grace took a loan which amounts to $500 from the bank and bank provides the loan to the customer but they charge interest on the loan amount. So, in this case, the Grace took $500 from bank and in turn will pay the bank amount of $550. Therefore, the $50 amount is the interest which the bank charged from Grace for the period it has money with him.

User Babsdoc
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