interestˈɪn tər ɪst, -trɪst
- past participle
- present participle
interest, involvement (noun)
a sense of concern with and curiosity about someone or something
"an interest in music"
sake, interest (noun)
a reason for wanting something done
"for your sake"; "died for the sake of his country"; "in the interest of safety"; "in the common interest"
interest, interestingness (noun)
the power of attracting or holding one's attention (because it is unusual or exciting etc.)
"they said nothing of great interest"; "primary colors can add interest to a room"
a fixed charge for borrowing money; usually a percentage of the amount borrowed
"how much interest do you pay on your mortgage?"
interest, stake (noun)
(law) a right or legal share of something; a financial involvement with something
"they have interests all over the world"; "a stake in the company's future"
interest, interest group (noun)
(usually plural) a social group whose members control some field of activity and who have common aims
"the iron interests stepped up production"
pastime, interest, pursuit (verb)
a diversion that occupies one's time and thoughts (usually pleasantly)
"sailing is her favorite pastime"; "his main pastime is gambling"; "he counts reading among his interests"; "they criticized the boy for his limited pursuits"
excite the curiosity of; engage the interest of
concern, interest, occupy, worry (verb)
be on the mind of
"I worry about the second Germanic consonant shift"
matter to, interest (verb)
be of importance or consequence
"This matters to me!"
The price paid for obtaining, or price received for providing, money or goods in a credit transaction, calculated as a fraction of the amount or value of what was borrowed.
A great attention and concern from someone or something; intellectual curiosity.
Attention that is given to or received from someone or something.
A business or amorous link or involvement.
Injury, or compensation for injury; damages.
To attract attention or concern.
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds. When money is borrowed, interest is typically paid to the lender as a percentage of the principal, the amount owed to the lender. The percentage of the principal that is paid as a fee over a certain period of time is called the interest rate. A bank deposit will earn interest because the bank is paying for the use of the deposited funds. Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft, and even entire factories in finance lease arrangements. The interest is calculated upon the value of the assets in the same manner as upon money. Interest is compensation to the lender, for a risk of principal loss, called credit risk; and b forgoing other investments that could have been made with the loaned asset. These forgone investments are known as the opportunity cost. Instead of the lender using the assets directly, they are advanced to the borrower. The borrower then enjoys the benefit of using the assets ahead of the effort required to pay for them, while the lender enjoys the benefit of the fee paid by the borrower for the privilege. In economics, interest is considered the price of credit.
In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower. Interest differs from profit, in that interest is received by a lender, whereas profit is received by the owner of an asset, investment or enterprise. (Interest may be part or the whole of the profit on an investment, but the two concepts are distinct from each other from an accounting perspective.) The rate of interest is equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent (usually expressed as a percentage). Compound interest means that interest is earned on prior interest in addition to the principal. Due to compounding, the total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e. In practice, interest is most often calculated on a daily, monthly, or yearly basis, and its impact is influenced greatly by its compounding rate.
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