“I have earned $442,991 USD in just six months by building a dropshipping business that people loved”.

Erin Rafferty

Up to 8 months off on annual plans

Create dropshipping store in minutes
Get 14 day trial, cancel anytime
Sign Up Now



Cost of borrowing money, typically expressed as a percentage of the loan amount, a critical factor in debt financing.

Introduction: Interest is a fundamental financial concept representing the cost of borrowing money or the reward for lending it. It is typically expressed as a percentage rate over a period, commonly annually, known as the interest rate. In the context of savings and investments, interest is the income earned by the lender or the return on investment for the investor. For borrowers, it's an expense on loans or debt. Interest rates are determined by a variety of factors including central bank policies, market demand for credit, inflation expectations, and the risk associated with the borrower. They play a crucial role in economic policy, influencing consumer spending, investment decisions, and overall economic growth.

Key Types of Interest:

  • Simple Interest: Calculated on the principal amount of a loan or deposit.
  • Compound Interest: Calculated on the principal amount and also on the accumulated interest of previous periods.

Impact on Economy and Individuals:

  • Monetary Policy: Central banks manipulate interest rates to control economic growth and inflation.
  • Investment Decisions: Interest rates affect the attractiveness of different investment vehicles.
  • Consumer Borrowing: Changes in interest rates influence consumer decisions on mortgages, car loans, and other personal loans.

Try Spocket for free, and explore all the tools and services you need to start, run, and grow your business.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.