Question

The time of a loan could be expressed in months, years or days:

a. true
b. false user: the amount the bank charges for use of money is called interest:
a. true
b. false user: interest=principal x rate:
a. true
b. false

Answer 1

1st = True
2nd = True
3rd True

Answer 2

Answer: a. True

Explanation: The duration of a loan could be days, months or years.

Answer: True

Explanation: Borrowers usually pay a certain percentage of the amount borrowed in addition to the actual amount borrowed. The extra money is called interest.

Answer: False

Explanation: The correct formula for calculating interest is:

Interest: Principal x Time x Rate