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What is the difference between interest and return?

by Dr. Gaurav Sinha , Mr. Vinay Kohli  ·  Unit 14 of 100
Interest is a fixed or predetermined amount earned or paid on certain financial products, such as savings accounts, fixed deposits, or loans. A return is a broader measure that represents the overall gain or loss from an investment. Returns may come from multiple sources, including price appreciation, dividends, rental income, or interest, and they can vary depending on market conditions.