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.

Related Terms

accrued interest -  More

compound interest -  More

exact interest -  More

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