-When you are borrowing money with compound interest, what should you be looking at? -Do you look at the advertised interest rate or what you end up paying when your loan matures? -Also, if you are lending money, are you actually receiving the quoted interest? -What about inflation and taxes that you may be paying on your interest income? what do you understand the term "interest rate" to mean? If you can, relate it to the concept of "opportunity cost