Interest
Finance, Capital Markets, Enforcement and Compliance
Interest is the price paid in return for using a sum of money for a certain period or for late payment of a monetary debt, and as a rule it is calculated by applying an annual rate to the principal. It has three basic types: contractual interest agreed by the parties, statutory interest applied where interest must be paid but the rate has not been set in the contract, and default interest accruing when the debtor falls into default. Rates are not fixed; they are determined according to the contract, whether the matter is commercial and the legislation in force.
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