What is meant by Interest?
When we borrow money, we are expected to pay for using it – this is known as Interest. Interest is an amount charged to the borrower for the privilege of using the lender’s money. Interest is usually calculated as a…
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What factors determine interest rates?
When we talk of interest rates, there are different types of interest rates -rates that banks offer to their depositors, rates that they lend to their borrowers,the rate at whichtheGovernment borrows in the Bond/Government Securities market, rates offered to investors in…
What is Simple Interest?
Simple Interest: Simple Interest is the interest paid only on the principal amount borrowed. No interest is paid on the interest accrued during the term of the loan. There are three components to calculate simple interest: principal, interest rate and…