It is the amount of money that is paid when borrowing another person's money.
www.mathselab.com
What is the formula for simple interest?
I = P x R x T
www.mathselab.com
wherein I = Interest, P = Principal, R = Rate, T = Time.
What is an interest rate?
www.mathselab.com
Interest rate is the amount that charged by lenders to borrowers. It is calculated at a fixed or variable rate for a specific time period.
What is compound interest?
www.mathselab.com
You may think of compound interest a the interest one earns on interest. It i the result one earns by reinvesting one's interest.
What is the formula for compound interest?
www.mathselab.com
where P stands for the initial principal balance, r is the interest rate, n is the number of times interest is compounded per time period and t is the number of time periods
P (1 + r/n)^(nt)
"Money makes money. And the money that money makes, makes money."