Notices

Interest

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Revision as of 12:45, 4 October 2005 by Rhody Trader (Talk | contribs)
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Definition:
The charge for the privilege of borrowing money, typically expressed as an annual percentage rate (APR).


The amount borrowed is known as the principal.

[edit] Example

If I borrow £1000 at 10% APR then it will cost me £100 per year until the principal is repaid.