ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cost. The amount of money that is needed to pay for or buy something.

Detailed explanation-2: -Interest is the cost of borrowing money. The borrower pays interest, and the lender receives it.

Detailed explanation-3: -What are the Different Types of Interest? The three types of interest include simple (regular) interest, accrued interest, and compounding interest. When money is borrowed, usually through the means of a loan, the borrower is required to pay the interest agreed upon by the two parties.

Detailed explanation-4: -A down payment is a sum of money that a buyer pays in the early stages of purchasing an expensive good or service. The down payment represents a portion of the total purchase price, and the buyer will often take out a loan to finance the remainder.

Detailed explanation-5: -What is Cost of Credit? Cost of Credit is the total amount you will pay less the amount of the original mortgage value. The difference between the two includes interest and any other fees and charges. The faster and sooner you reduce your mortgage, the less interest you’ll pay.