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interest


Definitions (3)

1. The fee charged by a lender to a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal; the rate is dependent upon the time value of money, the credit risk of the borrower, and the inflation rate. Here, interest per year divided by principal amount, expressed as a percentage. also called interest rate.

2. The return earned on an investment.

3. Partial or total ownership in an asset.

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Hidden Dangers of Monthly PaymentsFocus on the long-term cost of the loan, not the monthly payment. "Many car dealers or even mortgage lenders will entice borrowers by asking how much they can afford to pay each month," said Janet Kin ... Read more


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