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Rufina [12.5K]
1 year ago
12

When repaying a loan, the payment a borrower makes consists of ____________. a. interest and capital. b. legal tender and intere

st. c. principal and interest. d. collateral and principal.
Business
1 answer:
levacccp [35]1 year ago
7 0

When repaying a loan, the payment a borrower makes consists of principal and interest.

Interest is the amount paid by the borrower or deposit-taking financial institution to the lender or depositor in excess of the repayment of the principal at a specified rate. It is different from a fee that a borrower can pay to a lender or a third party.

Interest is the price you pay to borrow money or the cost you charge to borrow money. Interest is usually given as an annual percentage of the loan amount. This percentage is called the interest rate on the loan. For example, if you deposit money in a savings account, the bank will pay you interest.

Learn more about interest here:brainly.com/question/2294792

#SPJ4

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The journal entry is as follows:

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