ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Interest? Interest is the monetary charge for the privilege of borrowing money. Interest expense or revenue is often expressed as a dollar amount, while the interest rate used to calculate interest is typically expressed as an annual percentage rate (APR).

Detailed explanation-2: -If a person is entrusted with someone else’s money, property or assets but uses them for their own benefit, they might be guilty of misappropriation. Misappropriation refers to the intentional, unlawful use of another party’s property for purposes not authorized by the property’s owner.

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: -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).

Detailed explanation-5: -Interest is the price you pay to borrow money or the cost you charge to lend money. Interest is most often reflected as an annual percentage of the amount of a loan. This percentage is known as the interest rate on the loan.