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

Question

777dan777 [17]

3 years ago

14

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

?
A. principal
B. Interest
C. annual percentage rate

Business

2 answers:

ziro4ka [17] · Answer 1 · 2022-03-25T23:34:26+03:00

ziro4ka [17]3 years ago

6 0

B. Interest
Because the bank has to charge a certain amount for loaning out the money

N76 [4] · Answer 2 · 2022-03-26T01:14:39+03:00

Answer:

Letter B. Interest.

Explanation:

Interest is the reward paid to deficits by surpluses. That is, it is the income that is charged to borrow money. Thus, the extra money of $ 50 is the interest that Greece should pay for loans to those who save (surpluses), that is, those who postpone consumption.