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Interest rates are expected as a percentage of

User Anil Yadav
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1 Answer

4 votes

Answer:

the principle amount

Explanation:

I don't know how to explain it without an analogy so...

If a loan is charging a 10% interest amount of a $120 loan than the interest would be $12.

You multiply the interest rate by the total amount and that's how you find the amount of money you make off of interest.

(The total amount and principle amount are the same thing)

User Melton
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