interest

Definition 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.

Definition 2

The return earned on an investment.

Definition 3

Partial or total ownership in an asset.

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Related Terms

accrued interest, compound interest, exact interest, ordinary interest, explicit interest, imputed interest, personal interest, prepaid interest, simple interest, with interest, controlling interest, inchoate interest, indication of interest, insurable interest, open interest, security interest, short interest, interest coverage

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