Payment for the use of money over time. You earn interest by
lending your money. If you borrow money, interest is the amount you
pay to borrow the money. The rate of interest can be fixed or variable. It is usually calculated as a
percentage of the amount lent or borrowed. For example on a $10,000
car loan that has an interest rate of 10%, you would pay $1000
interest in the first year.
Last updated: 29 Jul 2015