what is interest 
interest is the monetary charge for the privilege of borrowing money interest expense or revenue is often expressed as a dollar amount while the interest rate used to calculate interest is typically expressed as an annual percentage rate apr interest is the amount of money a lender or financial institution receives for lending out money interest can also refer to the amount of ownership a stockholder has in a company usually expressed as a percentage investopedia nono floresunderstanding interestinterest is the concept of compensating one party for incurring risk and sacrificing the opportunity to use funds while penalizing another party for the use of someone else s funds the person temporarily parting ways with their money is entitled to compensation and the person temporarily using those funds is often required to pay this compensation 