Economy, asked by coolbroaa1454, 1 year ago

Sum of money that is borrowed and is expected to be paid back with interest is called

Answers

Answered by Anonymous

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., theamount borrowed), at a particular rate. ... Compound interest means that interest is earned on prior interest in addition to the principal.

Answered by gratefuljarette

Sum of money that is borrowed and is expected to be paid back with interest is called debt

Explanation:

When an individual borrows money from another person or from the bank it is done on the condition that the money would be paid back in certain period of time with an interest payment.
Many companies make use of this method for buying large equipment or other big purchases on the condition of paying the money back at a later period. The companies use this facility for taking loans for which they pay an interest annually.
This form of payment facility is given to the credit card holders who can borrow money from the banks and keep returning back the money through monthly payments with interest. There is a limit on the amount money that a person can borrow.