interest

The price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share or title in property.

A charge made for the use of money. Interest is calculated as follows: (Principal X rate of interest X time equals interest) (P x R x T = I).

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Compensation to bondholders in the form of cash or more bonds for the lending of capital. Accumulated or accrued interest is the interest due to the seller of a bond from the day after the last interest payment to the day before the settlement date. It is paid by the buyer of the bond. Imputed interest is not paid to the bondholder but it is calculated as if it was so that taxes can be paid on it anyway. Reinvested interest can significantly add to returns.

A charge paid for borrowing money. (See mortgage note)

The difference between the total loan payments and original loan amount (principal). Interest is to a loan as earned income is to a lease.