What is an interest?
Interest is the cost of using someone else's money. When you borrow money, you pay interest. Interest refers to two related but very distinct concepts: either the amount a borrower pays the bank for the cost of the loan, or the amount an account holder receives for the favor of leaving money behind. the bank. It is calculated as a percentage of the balance of a loan (or deposit), periodically paid to the lender for the privilege of using his money. The amount is usually stated as an annual rate, but interest can be calculated for longer or shorter periods than one year.