Question

When the lender provides the borrower with an amount of funds that must be repaid to the lender at the maturity date, along with an additional payment for the interest, it is called a_______________.

Answer 1

This is called a simple interest rate. When the loan amount must be repaid to the lender at the maturity date, along with an additional payment for the interest.

To calculate simple interest rate, the interest rate payment is divided by the loan amount.

Step-by-step explanation:

This is called a simple interest rate. When the loan amount must be repaid to the lender at the maturity date, along with an additional payment for the interest.

To calculate simple interest rate, the interest rate payment is divided by the loan amount.