ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -3.1 Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds. 3.2 A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

Detailed explanation-3: -Interest. Interest is the amount of money a financial institution charges for letting you use its money. The rate of interest can be either fixed or variable. • Fixed rate means the interest rate stays the same throughout the term of the loan.

Detailed explanation-4: -What Is Interest Cost? Interest cost is the cumulative amount of interest a borrower pays on a debt obligation over the life of the borrowing. Interest is paid on the debt in addition to repayment of principal.