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What do people pay to borrow money?
The loan is called the principal. People pay interest to borrow money, but payment is interest plus money toward the principal.
What is Interest is?
Interest means that you borrow money, and you owe it back with a little bit extra. e.g. you owe someone £10. After a month you give that money back. But for having let you borrow it, you might now owe £10 with 2 pounds (interest) added.
What is money a person pays to borrow money?
Interest.
What is the fee charged to borrow money called?
The fee charged to borrow money is called interest.
If I borrow money knowing it has interest - is it up to me to pay it and if I do not is that stealing?
If you borrow money on agreed terms, including the obligation to pay interest, then choose not to pay the interest, that would be stealing.
What kind of interest works against you if you borrow money?
compound interest
How do you understan borrowing in math?
Borrowing is the act of taking with intentions of returning it. If you borrow money, most people will charge interest on the money. Most banks charge interest yearly, sometimes monthly. The interest depends on who or where you borrow the money from.
What is the process of paying a bank to let you borrow money called?
The process of paying a bank to let you borrow money is called "interest."
Why do you receive interest on money that you keep in the bank?
The bank is paying you (compensating you) for the use of your money. When you borrow money from the bank, you pay them interest.
The amount of money borrow is called the?
Principal is the amount of money you borrow. Interest is the fee charged by the lender (or bank) to use their money. The total amount of money you pay back is the principle + interest.
What is the interest rate that the Federal Reserve charges member banks to borrow money?
The interest rate that the Federal Reserve charges member banks to borrow money is called the federal funds rate.
Is borrowed money taxable?
Money that is borrowed is not taxable. If you borrow it and don't pay it back, it can be classified as income and be subject to income tax. If you borrow money and are not being charged interest, the government will consider the cost of interest to be income that is taxed.
