Borrowing Cost for Dummies
noun
What does Borrowing Cost really mean?
Hey there! So, "Borrowing Cost" is a fancy term for the money you have to pay when you borrow cash from someone else, like a bank or a friend. It's like when you want to borrow a cool video game from a friend, and they tell you gotta give them a candy bar in return. In this case, the candy bar is the "borrowing cost" of getting that game.
But in the big world of grown-ups and money, "borrowing cost" can also mean the interest you have to pay on a loan or the fees for borrowing money. It's like when you borrow money from a bank to buy a car, you have to pay them back not just what you borrowed, but also a little extra for letting you use their money. That extra bit is the borrowing cost.
So, in a nutshell, borrowing cost is the price you have to pay for borrowing money from someone. Just like when you borrow something from a friend, you gotta give something back, right? It's kind of the same idea, just with money and grown-up stuff. Hope that all makes sense to you!
But in the big world of grown-ups and money, "borrowing cost" can also mean the interest you have to pay on a loan or the fees for borrowing money. It's like when you borrow money from a bank to buy a car, you have to pay them back not just what you borrowed, but also a little extra for letting you use their money. That extra bit is the borrowing cost.
So, in a nutshell, borrowing cost is the price you have to pay for borrowing money from someone. Just like when you borrow something from a friend, you gotta give something back, right? It's kind of the same idea, just with money and grown-up stuff. Hope that all makes sense to you!
Revised and Fact checked by William Taylor on 2023-11-15 02:31:43
Borrowing Cost In a sentece
Learn how to use Borrowing Cost inside a sentece
- When you take a loan from the bank, the borrowing cost includes the interest you have to pay back along with any additional fees.
- If you use a credit card to buy something and don't pay off the full balance, the borrowing cost will be the interest charged on the remaining amount.
- When you finance a car, the borrowing cost is the total amount you pay in interest over the life of the loan.
- If you borrow money from a friend and agree to pay them back with interest, the borrowing cost will be the additional amount you have to repay.
- When a company issues bonds to raise money, the borrowing cost is the interest they have to pay to the bondholders.
Borrowing Cost Hypernyms
Words that are more generic than the original word.