(1 point)
Responses
It is a percentage of the amount of the principal you have not yet paid back.
It is a percentage of the amount of the principal you have not yet paid back.
It is expressed as the APR of a loan.
It is expressed as the APR of a loan.
It is calculated only once, when you first take out the loan.
It is calculated only once, when you first take out the loan.
It is a percentage of the total cost of the loan.
It is a percentage of the total cost of the loan.
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The correct response is:
It is expressed as the APR of a loan.
Interest can be expressed in various ways, but the Annual Percentage Rate (APR) is a common way to quantify the cost of borrowing. The other statements are inaccurate or misleading. Interest is not only calculated once and is based on the principal amount as well as the terms of the loan.
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