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Interest can be the money paid by a bank to a consumer as compensation for keeping their money in that bank. Interest can also be the money paid to a bank for the use of their money.

User Ligowsky
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Answer: See explanation

Explanation:

You didn't really say what you want but the above statement is true.

Interest can be the money paid by a bank to a consumer as compensation for keeping their money in that bank. This is because when an individual or a company keeps some amount of money with a bank, an interest is paid on that money and the longer the time duration, the higher the interest paid.

Also, Interest can also be the money paid to a bank for the use of their money. When someone goes to the bank to collect a loan, the bank charges an interest on that amount borrowed. For example, if one borrows $10,000, an interest of let's say 8% may be charged for a 2 years loan. Therefore, the interest would be:

= $10000 × 8% × 2

= $1600.

User Gunny
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