BANKING AFFAIRS

Detailed explanation-1: -Interest is the monetary charge for borrowing money-generally expressed as a percentage, such as an annual percentage rate (APR). Interest may be earned by lenders for the use of their funds or paid by borrowers for the use of those funds.

Detailed explanation-2: -To put it simply, interest is the price you pay to borrow money – whether that’s a student loan, a mortgage or a credit card. When you borrow money, you generally must pay back the original amount you borrowed, plus a certain percentage of the loan amount as interest.

Detailed explanation-3: -What are the Different Types of Interest? The three types of interest include simple (regular) interest, accrued interest, and compounding interest.

Detailed explanation-4: -interest (n.) The earlier Middle English word was interesse (late 14c.), from Anglo-French interesse “what one has a legal concern in, ” from Medieval Latin interesse “compensation for loss, ” noun use of Latin interresse (compare German Interesse, from the same Medieval Latin source).