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What is interest?

Interest is the fee paid for the use of money borrowed or lent. It is usually expressed as a percentage of the amount borrowed and is calculated over a certain period of time, such as per year. Interest is applied to different types of loans, such as mortgages, personal loans, credit cards, and business loans. Interest depends on several factors, such as the amount borrowed, the term of the loan, the risk of the loan, and market conditions. Interest rates are an important part of finance and affect the economy, investments, and personal finances of individuals and businesses.

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