What is 5% interest mean?

When you apply for a loan, whether it's a student loan, a personal loan, a car loan, or a mortgage, lenders earn money by charging you interest. Interest is the price you pay for borrowing money from a lender.

What is 5% interest mean?

When you apply for a loan, whether it's a student loan, a personal loan, a car loan, or a mortgage, lenders earn money by charging you interest. Interest is the price you pay for borrowing money from a lender. That means you won't just return the money you borrowed. You will also return an additional amount, which is the interest on the loan.

Gudrun Grundmanns
Gudrun Grundmanns

Bacon guru. General internet ninja. Avid twitter specialist. Freelance music scholar. Typical bacon geek.