Question

3.13 unit test: credit and borrowing
due: fri mar 20, 2026 11:59pm
45 p
attempt 1
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which term describes the price a consumer pays for the privilege of using someone elses money?
principal
prepayment
interest
compound

Explanation:

• Principal is the original sum of money borrowed, not the cost for using it.
• Prepayment is paying back a loan early, not a cost for borrowing.
• Interest is the fee charged for the privilege of using someone else's money.
• Compound refers to a type of interest calculation, not the cost itself.

Answer:

interest