Question

Name an example when earning interest and paying interest? Use in your own words.

Answer 1

Answer:

Interest is earned when money is given out as asset by one who has it in excess to one who is in need of it. The earning is on the Part of the giver.it is what you gain by lending money out.

Interest paid on the other hand is a direct opposite of interest earned in the sence that it is what you pay on money borrowed in the form of loans and advances. You pay interest when you receive while you earn interest when you give.

Payment and earning both depend on what side you are on, going or receiving.

Answer 2

Answer:

earning interest example money put into a bank account

paying interest example paying back pulse a certain percent more of the original amount

Explanation: