19Interest Rates
When you borrow money, you pay back the money you borrowed plus a bit more, called interest. How much interest you pay is calculated as a percentage of what you borrowed. It's important to understand the different ways interest can be calculated or the interest rate you pay may be a lot higher than you bargained for. When you receive interest for the money you lend out, you may not necessarily receive the rate of interest you think you are. Interest is not a simple concept, but as we go from the simple interest rate to the compound, you'll see the true rate of interest.
1 SIMPLE INTEREST
Simple interest is the term we give to a way of calculating that extra cost of borrowing by one multiplication: the amount you borrow, ...
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