What is interest

Explanation

What is Interest 

Bank gives loan with an amount charged on the money borrowed. Similarly, banks pay an additional amount of the money to the depostior on the amount of money deposited in the bank. An amount of interest to be paid as a charge for the loan taken or borrowed. And, it is in the regular routine of the people to find various aspects of the use of money in their day to day life. Hence, there is a huge demand among the people in their day to day life for the money.

While we keep the demand for money aside, in this article we are going to discuss the role of interest in the money circulation in the hands of the people, how it is calculated, and the formula that is used to calculate the interest that is charged on loan taken by the person or on the deposit made by the same person. Since there are so many players available in the market of money who lend the money or accept deposits from the people, there are different and variety of interest rates charged on the loan amounts or for that matter there are varieties of interest rates offered on the deposits made by the people.

What is Interest in maths?

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