How are people who lend money to others compensated? Group of answer choices
They pay a commission to the borrower.
They charge interest to the borrower.
They charge an investment fee to the borrower.
They receive a commission on the amount borrowed.
Ans : They Charge Interest to the borrower.
Interest Means:
Interest is calculated as a percentage of a loan (or deposit) balance, paid to the lender periodically for the privilege of using their money. The amount is usually quoted as an annual rate, but interest can be calculated for periods that are longer or shorter than one year.
The Lender will charge interest periodically for the privilage of using their money..To borrow money, you’ll need to repay what you borrow. In addition, to compensate the lender for the risk of lending to you (and their inability to use the money anywhere else while you use it), you need to repay more than you borrowed.
How are people who lend money to others compensated? Group of answer choices They pay a...
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