When you borrow money, you’ll also pay interest on top of the amount you borrowed.. Interest is the money the lender gets for loaning you the money. Read Next: 5 Subtly Genius Moves All Wealthy People ...

Interest is one of the ways lenders make their money, and it’s what makes it worth it for them to give out loans. If you’re borrowing money, interest is the cost the bank charges you for the service.

Learn how the current index value impacts variable-rate loans, affecting interest rates with indexed rates and margins. Essential for market-related financial decisions.

Have you ever wondered how your bank decides how much to charge you on your mortgage or credit card? Have you ever looked at an account statement and failed to understand what all of the jargon meant?