(1 point)
Responses
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.
It is expressed as the APR of a loan.
It is expressed as the APR of a loan.
It is a percentage of the amount of the principal you have not yet paid back.
1 answer
The statement that is true of interest is:
It is a percentage of the amount of the principal you have not yet paid back.
Interest is typically calculated based on the outstanding principal balance of a loan, which decreases as you make payments. The other statements are not accurate representations of how interest works over the life of a loan.
