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The interest rate that determines the amount of cash interest the borrower pays and the investor receives each year is called the _______ .


The interest rate that determines the amount of cash interest the borrower pays and the investor receives each year is called the _______ .

A. amortization rate 

B. market interest rate 

C. discounting rate 

D. stated interest rate

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Answer #1

The interest rate is stated interest rate
Explanation :
a). amortisation rate is the rate for diminishing the value of asset due to its usage and time period. b). market interest rate is rate prevailing in the market c). discounting rate is the rate used to calculate the present value of cash flows. d). stated interest rate is the rate on which interest amount is calculated of which payment made by the borrower and received by the investor.
Hence the answer is D.

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