Final answer:
Interest is the monetary value added to an account to encourage savings and investments.
Explanation:
Interest is a monetary value added to an account, like a savings account, for keeping money in it. This additional money serves as a form of return for depositors, encouraging them to save and invest in their accounts.
For instance, when individuals deposit money into savings accounts, they earn interest on their balances, which is essentially a percentage of the deposited amount that the bank pays them over time. It incentivizes individuals to keep their funds in the account and allows their money to grow passively.
Interest acts as a reward for saving and a source of income for account holders, encouraging responsible financial habits and fostering long-term financial stability.
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