What is the best definition of an interest rate? A) the conditions a

QUESTION

What is the best definition of an interest rate?

A) the conditions a seller gives a buyer when offering a short-term loan
B) the amount of time for which the supplier extends credit
C) the value of the personal property the borrower is willing to forfeit if the loan goes unpaid
D) the price paid for the use of money over a certain period of time
E) the asset that is pledged to secure the loan

ANSWER

Answer: D
Explanation: D) The interest rate is the price paid for the use of money over a certain period of time.