**Q: **Is interest payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum? ¶

**A: **Yes, It is distinct from a fee which the borrower may pay the lender or some third party.

**Q: **Is interest received by a lender? ¶

**A: **Yes, and whereas profit is received by the owner of an asset, investment or enterprise.

**Q: **Is interest considered the price of credit? ¶

**A: **Yes, and therefore, it is also subject to distortions due to inflation.

**Q: **Was interest the result of the urbanized? ¶

**A: **Yes, and economically developed character of the societies that produced them, the new Jewish prohibition on interest showed a pastoral, tribal influence.

**Q: **Was interest no longer viewed in the same manner? ¶

**A: **Yes.

**Q: **Is interest earned on prior interest in addition to the principal? ¶

**A: **Yes.

**Q: **Is interest paid out of each payment and so should not be compounded and an annual rate of 12·r would make more sense? ¶

**A: **Yes.

**Q: **Is interest 12 per year? ¶

**A: **Yes.

**Q: **Is interest compensation for the time the lender forgoes the benefit of spending the money? ¶

**A: **Yes.

**Q: **Is interest the price of credit? ¶

**A: **Yes, and it plays the role of the cost of capital.

**Q: **Is interest computed and added twice in the year? ¶

**A: **Yes, and the $1 is multiplied by 1.5 twice, yielding $1.00×1.52 = $2.25.

**Q: **Is interest most often calculated on a daily? ¶

**A: **Yes, and monthly, or yearly basis, and its impact is influenced greatly by its compounding rate.

**Q: **Is interest wrong because it amounts to "double charging"? ¶

**A: **Yes, and charging for both the thing and the use of the thing.

**Q: **Is interest equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent? ¶

**A: **Yes.

**Q: **Is interest prohibited? ¶

**A: **Yes, as well as making money out of money is unacceptable.

**Q: **Is interest usually much higher than the original interest rate since it is reflecting the aggravation in the financial risk of the borrower? ¶

**A: **Yes.

**Q: **Is interest the rate of interest that a borrower must pay after material breach of a loan covenant? ¶

**A: **Yes.

**Q: **Is interest calculated only on the principal amount? ¶

**A: **Yes, or on that portion of the principal amount that remains.

**Q: **Is interest to be compounded in a year? ¶

**A: **Yes.

**Q: **Is interest calculated as /P where P is the price paid? ¶

**A: **Yes.

**Q: **Is interest composed of the real interest rate plus inflation? ¶

**A: **Yes, and among other factors.

**Q: **Is interest prorated by the number of days t: ·100? ¶

**A: **Yes.

**Q: **Is interest due? ¶

**A: **Yes.