What is Interest?

Interest or also called interest rates, it has a couple of meanings like the fee you pay under which conditions you can borrow money from the lender. The creditor gives you a loan after settling upon the interest what the customer pays back after the loan matures. Also it can mean that a person holds a large quantity of shares in a business.

For example your taking out a loan for personal use, now the creditor lends you the money let's say 500$ and the interest rate is 10%. This means when paying the loan you'll be paying in total £550. Another example if you've obtained a considerable amount of shares in a firm in the range of 5-10% that's also called as interest.