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what is interest
Interest: how much is paid for the use of money (as a percent, or an amount).


Simple interest is the amount of interest paid based on only the original amount lent or borrowed, rather than being based on accumulating interest. The formula for this is very simple: I=PRT, where I is interest, P is Principal, R is the percentage rate expressed as decimal and T is time, which is generally expressed in years, assuming your rate is an annual rate.


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