Question

Which of the following is interest meant to do?

1. Bring profit the lender
2. Deter you from borrowing too much
3. Enable a bank to cover expenses
4. Help you pay for college

Answer 1

Interest meant to "Bring profit the lender".

Step-by-step explanation:

The interest is a particular percentage of the amount that initially borrowed amount. simply it can be said as the "costs to borrow money". The amount that the lender gives or the borrower gets is called as the Principal amount. Interest is calculated based on the principle amount and this interest amount differs from place to place.

Interest is calculated as

`I = P* r * t`

Where

p is the principal

r is the rate of interest

t is the time

This interest amount is the profit for the lender.