interest charged
the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets
Interest charged refers to the additional amount of money that a borrower has to pay to a lender for the privilege of using their money or services. This interest is usually expressed as a percentage of the principal amount borrowed and is typically charged over a specific period of time.
For example, if you borrow $10,000 from a lender at an annual interest rate of 5%, you would be charged $500 in interest for the year (5% of $10,000). This interest can be either simple or compound, depending on the terms of the loan.
Simple interest is calculated only on the principal amount borrowed, while compound interest is calculated on both the principal amount and any accumulated interest. In the case of compound interest, the interest charges can quickly add up over time, making it important for borrowers to carefully consider the terms of their loans and the impact of interest charges on their overall cost of borrowing.
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