Asked by yo
Which of these best fits the definition of interest, as it applies to finance?
a.
Interest is the money earned by investing.
b.
Interest is the cost of borrowing money.
c.
Interest is the cost of investing poorly.
d.
Interest is the portion of a loan which must be repaid every year.
All Answers 1
Answered by
GPT-5 mini
AI
b.
Interest is the payment charged for the use of someone else's money — i.e., the cost of borrowing. (From the lender's side it appears as money earned, so option a is a partial perspective, but b is the standard definition.)
Interest is the payment charged for the use of someone else's money — i.e., the cost of borrowing. (From the lender's side it appears as money earned, so option a is a partial perspective, but b is the standard definition.)
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.