ECONOMICS (CBSE/UGC NET)

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: -Interest rate / Annual Percentage Rate (APR) The APR is the amount of annual interest plus fees you’ll pay averaged over the full term of the loan. Focusing on the APR allows you to better compare the cost of borrowing from different lenders, who may all have different fee structures.

Detailed explanation-3: -Interest-The price of using someone else’s money; the price of borrowing money. Interest rate-The price paid for using someone else’s money, expressed as a percentage of the amount borrowed.

Detailed explanation-4: -When you borrow money, interest is the cost of doing so and is typically expressed as an annual percentage of the loan (or amount of credit card borrowing). When you save money it is the rate your bank or building society will pay you to borrow your money. The money you earn on your savings is also called interest.

Detailed explanation-5: -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).