Question

Question
i] Explain briefly
about
Interest 2 explain briefly about interest ​

Answer 1

Answer:

Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party.

Answer 2

Explanation:

Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum

(that is, the amount borrowed), at a particular rate.

It is distinct from a fee which the borrower may pay the lender or some third party.

2 types of interest?

Banks actually use two types of interest calculations:

• Simple interest is calculated only on the principal amount of the loan.

• Compound interest is calculated on the principal and on interest earned.