Interest
The price of money over time: what a borrower pays to use someone else's funds, and what a saver earns for lending funds to an institution.
One word, two seats at the table. The same payment is a cost on one side and income on the other, which is why one building runs both sides of this unit.
Often Confused With
- Interest Rate
- Interest is the dollar amount; the interest rate is the percentage that produces it.
Taught In
See Also
3.1.A.3 · 3.2.A.2