Mathematics for FinanceMTP Dec 23 Series IQuestion 1389 of 512
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The amount charged for a defined length of time for uses of principal, generally on year basis is known as

Options

ABalance
BRate of Interest
CPrincipal
DInterest
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Correct Answer

✅ Option b — Rate of Interest

All Options:

  • ABalance
  • BRate of Interest
  • CPrincipal
  • DInterest

Detailed Solution & Explanation

**Identification of the Definition** - **Interest** is the cost of using borrowed money. - **Rate of Interest** is the percentage rate charged per unit of time (generally on a yearly basis) for the use of the principal. Hence, **Option B** is the correct answer.

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