Introduction In finance and economics, the price you pay to borrow money is known as interest. It is one type of fee that a borrower pays to a lender and a third party. In simple language, when we deposit money in our bank account, we get interest on it from a bank. Hence, we withdraw more money than we deposited. In this case, a bank is paying interest to us. Similarly, when we take a loan from a bank, we need to give more money than what we got because the bank takes interest on the principal amount from us.…