Question

Interest is:

A: a charge for lending money to a bank.

B:the amount owed for borrowing money.

C:the amount added into your savings when opening a bank account.

D: a charge for the convenience of accessing money stored in your bank account.

Answer 1

Hey there,

The word (interest) is when you borrow money but there is a little more money you have to add because of the fact that you took there money. So it is basically a charge on your self because you borrowed, they also need to make profit.

Your correct answer would be a charge for the convenience of accessing money stored in your bank account.

Answer 2

The correct answer is: B

Step-by-step explanation:

Interest is charged by a creditor or the party lending money to a debtor or the party receiving money for the use of assets, which can be cash, a car, a house and so on. The interest rate is the interest amount expressed as a percentage of the initial value of the asset that was borrowed. In practice, a creditor would charge a lower interest to a debtor who is considered to have a lower default risk and a higher interest to a debtor who is considered to have a higher default risk. Default risk: is the probability that a debtor would be unable to meet the payment obligations of their debt.