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Management · Q329

Financial Management

Graduate and Post Graduate · Management · question 329

Q329

An interest rate which is paid by money borrower and charged by lender is considered as

A.
annual rate
B.
periodic rate
Answer
C.
perpetuity rate of return
D.
annuity rate of return

Answer: Option B

Solution

Answer: Option B
Solution:
An interest rate which is paid by money borrower and charged by lender is considered as periodic rate. A periodic interest rate can be charged on a loan or realized on an investment over a specific period of time.