ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Interest is the money you owe when borrowing or receive when lending. Lenders calculate interest as a percentage of the loan amount. Consumers can earn interest by lending money (such as through a bond or certificate of deposit) or depositing funds into an interest-bearing bank account.

Detailed explanation-2: -Interest is the cost of borrowing money or the reward for saving.

Detailed explanation-3: -Interest is the extra money paid by the borrower to the lender.

Detailed explanation-4: -Interest-The price that people pay to borrow money. When people make loan payments, interest is a part of the payment. Interest Rate-The cost of borrowing money expressed as a percentage of the amount borrowed (principal). Typically, low-risk borrowers with good credit scores pay the lowest interest rates.