The Interest Rate on a Loan Which Charges the Borrowing

Multiple Choice

The interest rate on a loan which charges the borrowing customer only for the period of time the borrower actually has use of borrowed funds and may be derived from the formula I = Pxrxt is the:

A) Discount rate
B) Annual percentage rate (APR)
C) Simple interest rate
D) Current yield
E) Yield to maturity
F) Holding-period yield
G) Add-on rate
H) Coupon rate