What is Interest?
How Does Interest Work?
Let's assume you need $500,000 to buy a house. The "price" of borrowing that money is interest, and it is expressed as a percentage of the amount of money you obtain. The borrower pays the interest to the lender. The rate of interest reflects the time value of money, the borrower's credit risk, inflation rates and a variety of other market conditions.
Why Does Interest Matter?
Interest rates are some of the most powerful and influential components of an economy. As a result,