Question

What is interest? Discuss the characteristics of interest​

Answer 1

1. what is interest ?

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

2. Discuss the characteristics of interest.

Answer

Interests are the traits of personality of an individual which are significant for satisfaction and success in the educational and vocational fields. ... Interest and attention are inseparable and interest is treated as latent attention and attention is considered as interest in action.

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Answer 2

Answer:

Interest- The fee paid for the privilege of borrowing money is called interest, and it is often stated as an annual percentage rate (APR). The compensation a lender or financial organisation receives for giving out money is called interest. The percentage of a stockholder's ownership in a corporation that is also referred to as interest.

Explanation:

Characteristics of interest are as follows-

• It  is measurable.
• It is quantitative in nature.
• It depends upon the principal amount and the rate.
• It is generally calculated for a period of time.
• It is the amount over and above the principal amount.

Since, interest is the amount paid over and above the principal amount, therefore it is a privilege of borrowing money.

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