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One person (or organisation) pays interest to another - who earns it.

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10y ago
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Q: What is the difference between earning interest and paying interest?
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Related questions

What is the difference between simple interest and compound interest is one better than the other why or why not?

With compound interest, after the first period you interest is calculated, not only on the original amount but also on the amount of interest from earlier periods. As to "better" or not, the answer depends on whether you are earning it on savings or paying it on borrowing!


Is a 4.79 Interest rate good rate?

The answer depends on the following factors:whether you are paying it or earning it,what the rate of inflation iswhat your expectations are for the rate of inflation/interest over the duration.


What is the difference between apr and interest?

APR is the annual percentage rate... how much per year you're paying in interest expressed as a percentage of the principal. Interest is the amount of money you're paying in order to borrow money. They're related, as you can see, but they're not quite the same thing.


How can compound interest be good for me?

Its goodness or otherwise depends on whether you are a borrower (bad) or a lender/saver (good).


Is it better if I pay of my credit card balaces with money I have on side or if I just keep paying payments that I can each month?

The answer to that question depends on how much interest you are paying and how much interest you are earning. Almost all of the time it is better to pay off your credit cards. But if you need to borrow for something else then you need to compare interest rates before you pay offthe credit cards. But ALMOST ALL of the time paying off a credit card and not paying interest is in your best interest.


Difference between hostel and paying guest?

The main difference between hostel and paying guest is that in hostel you have to follow few rules and regulations while in case of paying guest there are no strict rules you have to follow all you need to do is just make sure that you paying guest owner is happy with you.


What is the difference between making a regular payment to a loan or applying a payment to only principal?

Generally, an unscheduled loan has interest compounded at the end of a time period (in most cases a month, sometimes a week.) When you make a loan payment, you are generally paying both accrued interest and principal debt. When you pay only to the principal, you are paying back the original amount without interest. This is done by people in order to reduce future interest payments.


Do I have to keep paying for a car that has been reposed by a bank if I surrender it to the bank in which is carring the loan?

The bank will sell the vechile, u will be responsible for the difference between what they sell it for and what you owe . plus any interest and penalties.


How can you eliminate the interest and penalties on your student loan?

The penalties by paying on time. The interest by paying it off.


What are non earning assets in banks?

Non-Earning Assets for banks are usually the loans for which the loan customers arent paying their monthly EMI's. Banks earn an income through the interest they get paid by the loan customers. So, if a loan customer defaults on his/her payment, the loan becomes a Non Earning or a Non Performing Asset. The term Non Performing Asset (NPA) is more commonly used than Non Earning.


How do banks earn money from lending money to their customers?

The customer pays the bank interest on the loan. The bank pays some of this interest to its depositors. The difference between incoming interest and outgoing interest (minus operating costs) is the bank's profit. With most loans charging more than 10% interest and most deposit accounts paying less than 0.5% interest, the bank can make loads of profit!


How do banks earn profit from lending money to their customers?

The customer pays the bank interest on the loan. The bank pays some of this interest to its depositors. The difference between incoming interest and outgoing interest (minus operating costs) is the bank's profit. With most loans charging more than 10% interest and most deposit accounts paying less than 0.5% interest, the bank can make loads of profit!