Interest

Interest is the cost of borrowing money or the reward for lending it. When you borrow, interest is the additional amount you pay beyond the original sum, usually calculated as a percentage rate over time. Conversely, when you lend money, interest is what you earn from that loan. It reflects the risk and time value of money, incentivizing lenders and compensating them for the potential loss or opportunity cost. Interest rates vary based on factors like creditworthiness, economic conditions, and loan terms, and they play a key role in finance and investment decisions.