answersLogoWhite

0

either surplus or deficit :p

User Avatar

Wiki User

12y ago

What else can I help you with?

Continue Learning about Finance

What is the total interest paid on the principal amount borrowed?

The total interest paid on the principal amount borrowed is the additional money paid on top of the original loan amount as compensation to the lender for borrowing the money.


Why is the interest on a loan typically higher than the principal amount borrowed?

The interest on a loan is typically higher than the principal amount borrowed because it is the cost of borrowing money from a lender. Lenders charge interest as a way to make a profit and compensate for the risk of lending money. The interest is calculated as a percentage of the principal amount and is added to the total amount owed, making the overall repayment higher than the initial borrowed amount.


When we talk of interest rates are these the borrowing rates or the lending rates?

When we talk of interest rates , we are talking of the interest rate on the total amount of money borrowed by a person.


How do you calculate how much you will pay in interest on a loan or credit card?

To calculate the interest on a loan or credit card, you multiply the interest rate by the amount borrowed and the length of time the money is borrowed for. This will give you the total amount of interest you will pay over the loan or credit card term.


Is the price of money borrowed or saved called interest loan or money supply?

The price of money borrowed is called interest. When you borrow money, you pay interest to the lender as the cost of using their funds. Conversely, when you save money in a bank, you may earn interest on your savings. Money supply refers to the total amount of money available in an economy, which is a different concept.

Related Questions

What is the total interest paid on the principal amount borrowed?

The total interest paid on the principal amount borrowed is the additional money paid on top of the original loan amount as compensation to the lender for borrowing the money.


What is the interest and the total amount of money that the US government has borrowed known as?

The National Debt


What are principal and interest on a loan?

The principal is the initial amount borrowed in a loan. Interest is the cost charged by the lender for borrowing that principal amount. The total repayment amount on a loan typically includes both the principal and the interest.


Why is the interest on a loan typically higher than the principal amount borrowed?

The interest on a loan is typically higher than the principal amount borrowed because it is the cost of borrowing money from a lender. Lenders charge interest as a way to make a profit and compensate for the risk of lending money. The interest is calculated as a percentage of the principal amount and is added to the total amount owed, making the overall repayment higher than the initial borrowed amount.


When we talk of interest rates are these the borrowing rates or the lending rates?

When we talk of interest rates , we are talking of the interest rate on the total amount of money borrowed by a person.


How do you calculate how much you will pay in interest on a loan or credit card?

To calculate the interest on a loan or credit card, you multiply the interest rate by the amount borrowed and the length of time the money is borrowed for. This will give you the total amount of interest you will pay over the loan or credit card term.


Is the price of money borrowed or saved called interest loan or money supply?

The price of money borrowed is called interest. When you borrow money, you pay interest to the lender as the cost of using their funds. Conversely, when you save money in a bank, you may earn interest on your savings. Money supply refers to the total amount of money available in an economy, which is a different concept.


What is the total amount borrowed called?

The total amount borrowed is referred to as the "principal." This is the initial sum of money that a borrower receives from a lender, which must be repaid, usually along with interest, over the term of the loan. Understanding the principal is crucial for borrowers as it determines the basis for interest calculations and repayment obligations.


What is the term for the original amount of money borrowed from a loan?

The term for the original amount of money borrowed from a loan is called the "principal." This is the initial sum that the borrower agrees to repay, excluding any interest or fees. The principal amount is crucial in determining the total repayment amount over the life of the loan.


What amount of money multiplied by the interest rate and the amount of time that the money will be earning interest?

The amount of money that earns interest is known as the principal. When multiplied by the interest rate and the time period for which the money is invested or borrowed, it determines the total interest earned or paid. This relationship is often expressed in the formula for simple interest: Interest = Principal × Rate × Time. The resulting figure represents the interest accrued over that specific duration.


What does it mean to pay interest on a loan or credit card?

Paying interest on a loan or credit card means that you are charged a fee for borrowing money. This fee is a percentage of the amount you borrowed and is added to your total repayment amount.


How do lenders make money from borrowers?

Lenders make money from borrowers by charging interest on the money they lend. Interest is a fee that borrowers pay for the privilege of borrowing money, and it is typically a percentage of the total amount borrowed. This allows lenders to earn a profit on the money they lend out.