Interest is a fee (or payment) made for the borrowing (or lending) of money. The two most common types of interest are simple interest, for which interest is paid only on the initial principal, and compound interest, for which interest earned can be re-invested to generate further interest.
Interest
See also
Compound Interest, Conversion Period, Present Value, Rule of 72, Simple InterestExplore with Wolfram|Alpha
References
Kellison, S. G. Theory of Interest, 2nd ed. Burr Ridge, IL: Richard D. Irwin, 1991.Referenced on Wolfram|Alpha
InterestCite this as:
Weisstein, Eric W. "Interest." From MathWorld--A Wolfram Web Resource. https://mathworld.wolfram.com/Interest.html