Question

Which of the following best defines interest?

A.
The number of loans you can have out at one time

B.
The length of time you can borrow money at any given time

C.
What you are paid when you lend your money to someone else

D.
Amount of money you lose when you lend someone else money

Answer 1

C.

Interest is the payment you receive for lending money (or conversely the cost you pay when borrowing).