Question

choose the answer from the dropdown list that correctly completes the sentence.
a loans dropdown with options: closing cost, interest rate, origination fee, down payment represents the cost of borrowing money expressed as a percentage of the amount borrowed.

Explanation:

To solve this, we analyze each option:

• Closing cost: Fees for finalizing a loan, not a percentage of the borrowed amount.
• Interest rate: By definition, it's the cost of borrowing money as a percentage of the principal (amount borrowed).
• Origination fee: A one - time fee for loan processing, not a percentage - based cost of borrowing.
• Down payment: A payment made upfront when borrowing (like for a mortgage), not the cost of borrowing expressed as a percentage.

Answer:

interest rate