Interest

Interest is the monetary fee for borrowing money, usually expressed as a percentage, such as the Annual Percentage Rate (APR).

Interest may be received by lenders for the use of their funds or paid by borrowers for the use of these funds.
Interest is often considered simple interest (based on principal) or compound interest (based on principal and previously earned interest).
Interest is often associated with credit cards, mortgages, auto loans, private loans, savings accounts, or fines.
Interest rates are highly dependent on macroeconomic policy dictated by the Federal Reserve’s federal funds rate.

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