Profile Picture
Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-08-05 21:45

a loan for the bank ends up earning more than the lent amount this is because the borrower repays the principal (loan amount) + interest

User

why is a loan an asset to the bank? because the loan earns an interest over its lifetime. this the the fixed or variable interest rate associated with the loan with time, that loan brings periodic cashflows repaying the principal and the interest

๐Ÿ’ฌ