How is the reward paid by a borrower to a lender for a loan referred to in the context of digital currencies?

3 answers

• Dijal VincentMay 12, 2023 · 2 years ago
  In the world of digital currencies, the reward paid by a borrower to a lender for a loan is commonly known as interest. Just like in traditional finance, when someone borrows money in the form of digital currencies, they are required to pay back not only the principal amount but also an additional amount called interest. This interest serves as the reward for the lender, compensating them for the opportunity cost of lending their funds instead of using them for other purposes. So, in short, the reward paid by a borrower to a lender for a loan in the context of digital currencies is referred to as interest.
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• dmbappybdFeb 05, 2021 · 5 years ago
  When it comes to digital currencies, the reward paid by a borrower to a lender for a loan is often called the loan interest. This interest is a percentage of the borrowed amount and is typically calculated based on the duration of the loan and the interest rate agreed upon between the borrower and the lender. It serves as a compensation for the lender's risk and the opportunity cost of lending their digital assets instead of holding or trading them. Therefore, in the context of digital currencies, the reward paid by a borrower to a lender for a loan is commonly referred to as loan interest.
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• Ryan HartleyJun 11, 2023 · 2 years ago
  In the digital currency space, the reward paid by a borrower to a lender for a loan is commonly known as the loan yield. The loan yield represents the interest or return that the lender receives for lending their digital assets to the borrower. It is typically expressed as an annual percentage rate (APR) and is calculated based on factors such as the loan amount, duration, and interest rate. So, to summarize, the reward paid by a borrower to a lender for a loan in the context of digital currencies is referred to as the loan yield.
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