Money paid for the use of other money.

Example: Sam invests $1000 and receives $60 in interest after a year.

Example: Alex borrows $5000 from the bank at a 5% interest rate, and has to pay $250 interest in the first year.

Example: Sam invests $1000 and receives $60 in interest after a year.

Example: Alex borrows $5000 from the bank at a 5% interest rate, and has to pay $250 interest in the first year.

See: Interest Rate

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