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Explain what is meant by credit. What is the function of interest?

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Answer:

Credit is loan and interest is % charge levied on the borrowed money

Step-by-step explanation:

Credit is basically a form of loan. In current times, it also signifies an argument through which the supplier lends money to the borrower (individual /organization) and becomes stake holder in the organization or ask for share in profit.

Rate of interest is the % charge levied on sum of money borrowed by the borrower for certain period of time

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