Return
Interest can be summarized in one word: return.
Interest represents the compensation you receive for lending money or investing in something. It's the profit you earn on your investment, or the cost you pay for borrowing money.
Examples:
- You deposit money in a savings account, and the bank pays you interest for the use of your money.
- You take out a loan to buy a car, and you pay interest to the lender for the privilege of borrowing the money.
