Wednesday, March 5, 2008

Interest

Interest is a fee paid on borrowed capital. By far the most common form in which these assets are lent is money, but other assets may be lent to the borrower, such as shares, consumer goods through hire purchase, major assets such as aircraft, and even entire factories in finance lease arrangements. In each case the interest is calculated upon the value of the assets in the same manner as upon money. Interest can also be thought of as "rent on money

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