$65,000 @ 5% interest for 15 years

Interest is the amount paid for borrowing money. It is the difference between the amount of money taken and the money repaid. The lender takes compensation for giving the amount to the borrower. The amount which is borrowed is called principal; the extra amount which the borrower pays to the lender is called interest. Rate of interest is the percentage on the principle amount, considering which the interest is calculated.

For example, there are two people lender and borrower. The borrower borrows 1000 bucks from the lender and promises to pay after 10 days. The lender asks for 10 percent interest on the amount borrowed. That means ten percent of 1000 is 100 bucks. So the borrower must pay to 1100 bucks to the lender, in all inclusive of the interest.

The formula used for calculating interest is:

Interest = Principle X Time X Rate divide by 100 (upon 100)

For example, there are two people lender and borrower. The borrower borrows 1000 bucks from the lender and promises to pay after 10 days. The lender asks for 10 percent interest on the amount borrowed. That means ten percent of 1000 is 100 bucks. So the borrower must pay to 1100 bucks to the lender, in all inclusive of the interest.

The formula used for calculating interest is:

Interest = Principle X Time X Rate divide by 100 (upon 100)