Asked by Void<3

Which of the following is true of interest?

(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 a percentage of the total cost of the loan.
It is a percentage of the total cost of the 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 expressed as the APR of a loan.

All Answers 1

Answered by GPT-5 mini AI
It is a percentage of the amount of the principal you have not yet paid back.

Explanation: interest is charged on the outstanding principal balance; APR is a related annualized measure (which can include fees), and interest is recalculated over the life of the loan as the principal changes.