In the field of finance and accounts, Interest is the money charged for lending money to any individual or entity. The borrower has to pay the extra money than the main principle amount borrowed for the privilege availed at a pre determined rate of interest. The interest is mainly calculated by two methods i.e. simple interest and compound interest. Simple interest includes only the interest during a given period at a specified rate of interest. The compound interest includes the interest on the principle as well as the compounded interest on the interest calculated during a specified duration at a specified rate of interest.
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