speaking, interest is a payment made by a borrower to the lender for the money
is the reward paid by the borrower to the lender for the use of capital.
“Interest is the price paid for the use of capital in any
interest is the total interest amount received by creditors from debtors.
Interest = (Net Interest) + (reward for inconvenience) + (insurance against
risk of non-repayment) + (payment for service of debt management)
Interest is only a part of the gross interest. It is the payment for use of
A good example
for net interest is the interest payable for Government Securities.