Answer:

The number gained when money is invested is called interest. Interest is a fee, paid on borrowed capital.

For example, An interest rate of 7% per year means that every $100 invested gains $7 interest at the end of the year.

The interest is calculated upon the value of the assets in the same manner as upon money. Interest can be thought of as rent on money. For example, if you want to borrow money from the bank, there is a certain rate you have to pay according to how much you want loaned to you.