07/12/2022
It's time for some Wednesday Wisdom!
To make it simple, Interest is what someone pays you to borrow your money or vice versa.
It can almost be seen as the cost of renting money. When you loan money from the bank, interest is the % of that loan that you pay the bank for them lending you the money.
In investing it can be seen as the cost of debt.
Interest rates come in all shapes and forms and there isn’t one main interest rate. Often when people speak of interest rates they themselves are not sure which one they are referring to.
The rate most often in the news, are known as the key rates, like the repo rate and prime interest rate.
Now you know! Share this with your friends to share the wisdom!