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WHAT IS INTEREST RATE DEFINITION GLOSSARY BASIC INFORMATION 101 LEARNING FINANCIAL EDUCATION

 

 
 

INTEREST

 

The amount a lender charges a borrower for using his or her money.  It is often a percentage of the amount borrowed. Interest may be fixed, or may be variable, changing at selected intervals.

 

Simple interest is based on the loan amount (principle) only.  Compound interest is based on the loan amount, plus accumulated interest.

 

  

 

 

 

 

 

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