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Explain this statement: Interest is the amount of money paid for the use of money.
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that interest is the amount of money paid for the use of money.
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How do we explain that interest is what you pay to use money. You know, I'm just gonna start with the interest equation here. This is just simple interest. But it works for compounding to. And if we think about this, if I could get an interest rate zero, then my interest is $0. Resign there. If I don't borrow it, where, then The time is zero, and it's also $0 I have to pay back. But as soon is I have an interest rate. Whether it's 1% or 10% I'm no multiplying it by a principal whatever amount I borrowed. So whenever I borrow it, I have to pay something back. So if I go out and I take out a car loans, But I could buy my $30,000 car. I'm getting this money now. I'm gonna pay some interest on it so that I can have it now rather than waiting for me to be able to save up this amount of money
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