| 释义 |
interest Effectively the price attached to the use of money belonging to someone else. It is expressed as a rate, usually as a percentage per year, though often how the interest is calculated can make an important difference. Simple interest calculations involve interest being paid on the whole principle for the whole term, so if £5000 is borrowed at 8% pa, and the finance is for 3 years, the buyer will pay 5000×8/100×3=£1200 in interest charges and will have to pay 6200 ÷ 36=£127.22 per month for 3 years. An interest‐bearing account will usually reinvest the interest (so the interest is added to the principal and subsequently interest will be paid on the larger amount), and this is known as compound interest.
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