Interest
Definition 1 The fee charged by a Lender to a borrower for the use of borrowed Money, usually expressed as an annual percentage of the principal; the rate is Dependent upon the time value of Money, the Credit risk of the borrower, and the Inflation rate. Here, Interest per year divided by Principal amount, expressed as a percentage. also called Interest rate. Definition 2 The Return earned on an investment. Definition 3 Partial or total ownership in an Asset.