Interest is a charge an individual pays for the use of
borrowed funds. When a person enter repayment they not only have to pay the
principal (sum initially borrowed) but also an extra fee of interest on that
borrowed money.
Particularly, the interest rate (l/m) is a percent of
principal (P) paid a certain amount of times (m) per period (generally quoted
per annum).
Benefits of Paying
Interest
Making payments on your interest notice can reduce the
amount of interest that will capitalize when your account enters repayment.
Because less or no interest will be computed to your original loan amount, your
monthly payment will be a smaller amount.
