Fill in the Blank QuestionFill in the blank question. is the price that is paid for the use of borrowed money.

The term that fits in the blank is "Interest."

Interest is the cost of borrowing money, generally expressed as a percentage of the amount borrowed, known as the principal. It serves as compensation to the lender for the risk taken and the use of their funds. There are various types of interest, such as simple interest, which is calculated on the principal alone, and compound interest, which is calculated on the principal plus any accumulated interest. The rate at which interest is charged can depend on various factors, including the creditworthiness of the borrower, prevailing economic conditions, and the terms of the loan agreement. Understanding interest is crucial for financial literacy, as it affects decisions related to loans, mortgages, and investment opportunities.