Interest is the price someone pays to borrow money. In a sense, interest is like a rental payment for the use of the borrowed money. The amount of interest a borrower pays is determined by how much they borrow, how long they have to repay the loan, and the interest rate. Most interest rates are a set percentage of the total loan amount paid each year by the borrower. For instance, borrowing $1,000 at
Fascinating economy
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Larissa Zaplatinskaia
