May 28, 2015Mike Kappel
Interest is the money paid to a lender by the borrower in addition to the money that was borrowed (principal).
As a small business owner you might be charging interest to a customer, or paying interest to a lender (e.g., bank). Interest is usually computed as either nominal interest (flat rate), real interest (takes inflation into account), or effective interest (compounded).
Related Blog Article
What Is Interest?