Glossary
Interest
- Interest is the money you pay to a lender for the ability to borrow money from them. For example, you have to pay the bank a percentage of the amount you borrowed as interest. If you have a mortgage(LINKME) payment then part of the payment goes towards the principle(LINKME) and part is paid towards interest.
- Interest is the money that is made as a return from an investment. For example, you may earn interest on a savings account.